The doctor as double agent: information asymmetry, health insurance, and medical care.
In a model incorporating uncertainty and state-dependent utility of health services, as well as information asymmetry between patients/buyers and physicians/sellers, two types of equilibria are compared: (1) when consumers have conventional third-party insurance and doctors are paid on the basis of fee-for-service; and (2) when insurance is through an HMO which provides health services through its own doctors. Conditions are found under which contractual or legal incentives can overcome the information asymmetry problem and bring about an efficient allocation of resources to health services provision.
Blomqvist
A
A
Department of Economics, University of Western Ontario, London, Canada.
D002170:Canada; D003256:Community Participation / Q000191:economics* / Q000523:psychology / Q000706:statistics & numerical data; D003365:Costs and Cost Analysis / Q000379:methods / Q000706:statistics & numerical data; D004526:Efficiency; D007722:Health Knowledge, Attitudes, Practice; D006279:Health Maintenance Organizations / Q000191:economics*; D006801:Humans; D007257:Information Theory; D007357:Insurance, Physician Services / Q000191:economics*; D007373:Interinstitutional Relations; D017059:Models, Econometric; D010819:Physician's Role; D010817:Physician-Patient Relations; D013269:Stochastic Processes