CSR Impact on Hospital Duopoly with Price and Quality Competition
Author
Source
Journal of Applied Mathematics
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-04-02
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
This paper investigates the impact of corporate social responsibility (CSR) on hospital duopoly with price and quality competition.
A CSR hospital is defined in this paper that cares about not only the profit but also the patient benefit.
We start our analysis by establishing a two-stage Hotelling model with and without CSR.
Results indicate that privatization mechanism may not be the best way of improving medical quality.
Competition between hospitals with zero-CSR would lower the equilibrium qualities compared to the first-best level.
So the coexistence of a public (more accurately, partial public) and a private hospital might be more efficient than a private-private hospital duopoly.
During the competition with CSR in price and quality, social welfare level acts in accordance with an inverted U-shaped trajectory as CSR degree increases.
The main reason lies in tha fact that optimal degree of CSR is determined by the trade-off between the benefit of quality improvement and the cost of quality investment.
Numerical simulation shows that the optimal degree of CSR is less than a third.
American Psychological Association (APA)
Xu, Youguang. 2014. CSR Impact on Hospital Duopoly with Price and Quality Competition. Journal of Applied Mathematics،Vol. 2014, no. 2014, pp.1-12.
https://search.emarefa.net/detail/BIM-449932
Modern Language Association (MLA)
Xu, Youguang. CSR Impact on Hospital Duopoly with Price and Quality Competition. Journal of Applied Mathematics No. 2014 (2014), pp.1-12.
https://search.emarefa.net/detail/BIM-449932
American Medical Association (AMA)
Xu, Youguang. CSR Impact on Hospital Duopoly with Price and Quality Competition. Journal of Applied Mathematics. 2014. Vol. 2014, no. 2014, pp.1-12.
https://search.emarefa.net/detail/BIM-449932
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-449932