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Nadja Kairies-Schwarz
''Altruism heterogeneity, quality competition and horizontal differentiation among healthcare providers''
( 2023, Vol. 43 No.2 )
Recent empirical evidence shows substantial altruism heterogeneity among healthcare providers. Spurred by this evidence, we build a quality competition model with altruism heterogeneity among healthcare providers that also endogenously determine the degree of horizontal differentiation within the healthcare provision market. We find that relatively more altruistic healthcare providers treat more patients and provide higher quality per patient. In addition, we show that when healthcare providers endogenously choose their location, the more altruistic provider locates more centrally. In terms of specialization this indicates that more altruistic providers can afford to engage in less horizontal differentiation.
Keywords: healthcare provider, quality competition, altruism heterogeneity
JEL: I1 - Health: General
D4 - Market Structure and Pricing: General
Manuscript Received : Jul 12 2022 Manuscript Accepted : Jun 30 2023

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