Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2021:14: Multiple Pricing for Personal Assistance Services

Tommy Andersson (), Lina Maria Ellegård (), Andreea Enache (), Albin Erlanson () and Prakriti Thami ()
Additional contact information
Tommy Andersson: Department of Economics, Lund University, Postal: School of Economics and Management, Box 7080, S-220 07 Lund, Sweden
Lina Maria Ellegård: Department of Economics, Lund University, Postal: School of Economics and Management, Box 7080, S-220 07 Lund, Sweden
Andreea Enache: Stockholm School of Economics
Albin Erlanson: University of Essex
Prakriti Thami: Department of Economics, Lund University, Postal: School of Economics and Management, Box 7080, S-220 07 Lund, Sweden

Abstract: This paper provides a general theoretical framework that captures the essential features of a Swedish reform where private and public health care providers serve patients with certain functional impairments. Because providers receive a fixed hourly compensation for their services (identical across patient types) and only private providers can reject service requests from patients, private providers avoid the costliest patients, resulting in a monetary deficit for public providers. To partially overcome this problem, a multiple pricing (reimbursement) scheme is proposed and its solution is characterized. The results suggest that there are some fundamental trade-offs, e.g., between the goals of containing costs and restricting choices for patients, but that the suggested pricing scheme may substantially reduce the deficits for public providers without affecting the total budget set by the central government.

Keywords: health care services; public and private providers; multiple pricing; welfare; dumping

JEL-codes: C61; D47; D78; I11

Language: English

25 pages, First version: November 5, 2021. Revised: April 12, 2022.

Full text files

wp21_14.pdf PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Prakriti Thami ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2022-04-15 14:23:01.