The physician's behavior and equity under a fundholding contract

Jacob Glazer*, Amir Shmueli

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

We study the physician's allocation of a fixed budget across patients arriving sequentially at his office. It is shown that, at any point in time, the resources allocated to the present patient will depend on the amount of resources already expended on previous patients and on the physician's attitude towards risk. Consequently, we prove that under a fundholding contract, certain basic equity criteria are violated.

Original languageEnglish
Pages (from-to)781-785
Number of pages5
JournalEuropean Economic Review
Volume39
Issue number3-4
DOIs
StatePublished - Apr 1995
Externally publishedYes

Keywords

  • Contracts
  • Equity
  • Fundholding

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