Kaarbøe, Oddvar M.; Siciliani, Luigi - Institutt for Økonomi, Universitetet i Bergen - 2011
We present a model of optimal contracting between a purchaser and a provider of health services when quality has two dimensions. We assume that one dimension of quality is veri?able (dimension 1) and one dimension is not verifiable (dimension 2). We show that the power of the incentive scheme...