On Competition and Regulation in Health Care Systems

Health care systems are under reform in many countries. This typically involves a shift towards more competition. But still, markets are highly regulated. This study analyzes competition and regulatory measures in four important fields using the modern tools of micro-economic theory and microeconometrics. The book demonstrates how price regulation interacts with the quality of care and shows that non-price competition amongst providers affects the social desirability of a gatekeeping system. Using data from the German Socio-Economic Panel, the conventional wisdom of risk selection by German sickness funds is challenged.