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A Role of Insurance Companies in the Health Care Industry |
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Working paper |
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We build up a Hotelling model to discuss
the possible roles of insurance companies in the health care industry. In
this paper, we demonstrate that the presence of insurance companies will
reduce the health care prices and increase the social welfare. In other
words, the insurance companies play an another
aggressive role for enhancing competitions between hospitals except for
reducing the variability of insurant's incomes. |