Lambertini, Luca ; Tampieri, Alessandro
(2011)
The Dynamics of Disease in a Regulated Vertically Differentiated Health System.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 21.
DOI 10.6092/unibo/amsacta/4504.
In: Quaderni - Working Paper DSE
(737).
ISSN 2282-6483.
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Abstract
We build up a differential game to investigate the interplay between the quality of health care and the presence of an evolving disease in a duopoly where patients are heterogeneous along the income dimension. We prove unicity, stability and perfection of the open-loop Nash solution. Moreover, we identify the admissible parameter region wherein price regulation achieves the twofold objectives of ensuring cares to all patients and eradicating the disease.
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