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Demand and pricing of preventative health care

Vandoros, Sotiris and Carman, Katherine Grace (2011) Demand and pricing of preventative health care. 23/2011. LSE Health working papers, LSE Health, London School of Economics and Political Science.

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Identification Number: 23/2011

Abstract

This study introduces a theoretical framework for the economics of preventative healthcare. Mathematical models are used to explain how the price and utilization of prevention change depending on demand, as well as factors such as the price of a cure, the probability of illness, the efficacy of treatment, the probability of illness and cost functions. Different models are developed depending on the presence and level of health insurance and competition in preventative healthcare markets. Findings show the effect of various factors on the price of preventative healthcare, reveal the marginal effects of a change in the parameters on prices and suggest that under certain circumstances prevention is not the optimal choice.

Item Type: Monograph (Working Paper)
Official URL: http://www2.lse.ac.uk/LSEHealthAndSocialCare/LSEHe...
Additional Information: © 2011 The Authors
Subjects: H Social Sciences > H Social Sciences (General)
R Medicine > RA Public aspects of medicine
Sets: Research centres and groups > LSE Health
Collections > LSE Health Working Paper Series in Health Policy and Economics
Date Deposited: 19 Mar 2013 10:25
Last Modified: 01 Aug 2013 07:54
URI: http://eprints.lse.ac.uk/id/eprint/49228

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