To wait or to pay for medical treatment? Restraining ex-post moral hazard in health insurance.

In: Journal of Health Economics, Jg. 27 (2008), S. 1418-1422
ISSN: 0167-6296
Zeitschriftenaufsatz / Fach: Wirtschaftswissenschaften
We explore the hierarchy of two instruments, waiting time and coinsurance
for medical treatment, for optimally solving the tradeoff between the
economic gains from risk sharing and the losses from moral hazard. We
show that the optimal waiting time is zero, given that the coinsurance rate is
optimally set.

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