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Competition between HMO and PPO: A Two-Sided Market Approach

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dc.creatorBardey, David
dc.creatorRochet, Jean Charles
dc.date.accessioned2015-10-11T16:03:47Z
dc.date.available2015-10-11T16:03:47Z
dc.date.created2009-01
dc.date.issued2009
dc.description.abstractWe set-up a two-sided market framework to model competition between a Prefered Provider Organization (PPO) and a Health Maintenance Organization (HMO). Both health plans compete to attract policyholderson one side and providers on the other side. The PPO, which is characterized by a higher diversity of providers, attracts riskier policyholders. Our two-sided framework allows to examine the consequences of this risk segmentation on the providers’ side, especially in terms of remuneration. The outcome of competition mainly depends on two effects: a demand effect, influenced by the value put by policyholders on providers access and an adverse selection effect, captured by the characteristics of the health risk distribution. If the adverse selection effect is too strong, the HMO gets a higher profit in equilibrium. On the contrary, if the demand effect dominates, the PPO profit is higher in spite of the unfavorable risk segmentation. We believe that our model, by highlighting the two-sided market structure of the health plans’ competition, provides new insights to understand the increase in the PPOs’ market share observed during the last decade in the US.eng
dc.format.extent17 páginasspa
dc.format.mediumRecurso electrónicospa
dc.format.mimetypeapplication/pdf
dc.format.tipoDocumentospa
dc.identifier.doihttps://doi.org/10.48713/10336_11001
dc.identifier.urihttp://repository.urosario.edu.co/handle/10336/11001
dc.language.isoeng
dc.publisherUniversidad del Rosariospa
dc.publisher.departmentFacultad de Economíaspa
dc.relation.citationTitleSerie Documentos de trabajo. Economía
dc.relation.urihttps://ideas.repec.org/p/col/000092/005217.html
dc.rights.accesRightsinfo:eu-repo/semantics/openAccess
dc.rights.accesoAbierto (Texto completo)spa
dc.rights.ccAtribución-NoComercial-SinDerivadas 2.5 Colombiaspa
dc.source.instnameinstname:Universidad del Rosariospa
dc.source.instnameinstname:Universidad del Rosariospa
dc.source.reponamereponame:Repositorio Institucional EdocURspa
dc.subjectTwo-sided Marketsspa
dc.subjectManaged Care Competitionspa
dc.subjectNetwork Effectsspa
dc.subjectAdverse Selectionspa
dc.subject.ddcDe gobiernos federales & estatales de Estados Unidos
dc.subject.lembEfectividad organizacional::Modelosspa
dc.subject.lembPlanificación estratégica::Modelosspa
dc.subject.lembAdministración de servicios de saludspa
dc.titleCompetition between HMO and PPO: A Two-Sided Market Approachspa
dc.typeworkingPapereng
dc.type.hasVersioninfo:eu-repo/semantics/acceptedVersion
dc.type.spaDocumento de trabajospa
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