The paper studies the short run and long run effects of the introduction of a Pay-for-Performance, P4P, payment scheme. Providers of a public service are assumed to employ more than one agent. If agents have different attitude to the job (for example only a portion of the agents has some form of...

We consider how purchasers and providers negotiate the quality element of contracts when the purchasers are required to link a fixed proportion of revenue to quality. A simple model predicts that the complexity of the quality element will depend on purchaser and provider characteristics. Using...

The Quality and Outcomes Framework (QOF) is a Pay-for-Performance scheme introduced in England in 2004 to reward primary care providers. This incentive scheme provides financial incentives that reward the overall performance of a practice, not individual effort. Consequently, an important...