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 language | English |
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Pages (from-to) | 781-785 |
Number of pages | 5 |
Journal | European Economic Review |
Volume | 39 |
Issue number | 3-4 |
DOIs | |
State | Published - Apr 1995 |
Keywords
- Contracts
- Equity
- Fundholding