Supply-Side and Demand-Side Cost Sharing in Health Care

Supply-side and demand-side cost sharing in deregulated social health insurance: which is more effective?

Microeconomic theory predicts that if patients are fully insured and providers are paid fee-for-service, utilization of medical services exceeds the efficient level ('moral hazard effect'). In Switzerland, both demand-side and supply-side cost sharing have been introduced to mitigate this problem. Analyzing a panel dataset of about 160,000 adults, we find both types of cost sharing to be effect...

Comparing supply side and demand side options for electrifying a local area using life cycle analysis of energy technologies and demand side programs

The main aim of this paper is to select the best portfolio of renewable energy technologies (RETs) for electrifying an elected area which is not connected to any other grids. Minimizing total costs of the system is considered as the main factor in finding the best decision. In order to make the optimum plan more applicable, the technique of life cycle analysis is applied. This technique takes i...

Target Pricing: Demand-Side Versus Supply-Side Approaches

The practice of target pricing has been a key factor in the success of Japanese manufacturers. In the more commonly-known demand-side approach, the target price for the supplier equals the manufacturer’s market price less a percent margin for the manufacturer but no cost-improvement expenses are shared. In the supply-side approach, cost-improvement expenses are shared and the target price equal...

Dynamic investment strategies with demand-side and cost-side risks

Investments in cost reductions are critical for the long run success of companies that operate in dynamic and stochastic market environments. This paper studies optimal investment in cost reductions as a real option under the assumption that a single firm faces two different sources of risk, stochastic demand and input prices. We derive optimal investment strategies for a monopoly as well as a ...

Demand Side Financing in Health