Online Appendix to Incentives for Quality through Endogenous Routing
نویسندگان
چکیده
Because cE−cI > ar gives ∂V (t,0) ∂p > 0, C 0(0) = 0 implies pFB > 0. Now we have shown pFB ∈ (0, 1), which implies (pFB(ar+ cI) + (1− p)cE) ∈ (ar+ cI , cE). Applying the condition a f(t) < ar+ cI , we get ∂V (t,p) ∂t > 0, which implies t > t. ¥ PROOF OF LEMMA 2, 3, 4. We will prove Lemma 2. Proofs of Lemma 3 and 4 are similar and thus omitted. The Kuhn-Tucker condition is −1+prf(t) ≤ 0 with equality at interior solutions. The
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Incentives for Quality Through Endogenous Routing
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