International Health Care Reform: A Legal, Economic, and Political Analysis

By Colleen M. Flood | Go to book overview

Notes
1
O.E. Williamson, Markets and Hierarchies, Analysis and Anti-trust Implications: A Study in the Economics of Internal Organization (New York: The Free Press, 1975) at p. 8.
2
R.H. Coase, ‘The Nature Of The Firm’, (1937) 4 Economica 386.
3
For a discussion, see T.E. Olsen, ‘Agency Costs and the Limits of Integration’, (1996) 27(3) RAND J. of Econ. 479.
4
Coase, op. cit., p. 395.
5
See generally Williamson, Markets and Hierarchies: Analysis and Anti-trust Implications., op. cit., and O.E. Williamson, The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting (New York: Free Press, 1985).
6
H.A. Simon, Administrative Behavior: A Study of Decision-Making Processes in Administrative Organization, (2nd edn), (New York: Free Press, 1965).
7
See O.E. Williamson, ‘Comparative Economic Organization: The Analysis of Discrete Structural Alternatives’, (1991) 36 Admin. Sci. Q. 269 at pp. 281-282.
8
H. Imai, ‘Bilateral Price-Setting in a Bilateral Monopoly Model’, (1986) 24 J. Econ. Theory 311; S.R. Williams, ‘Efficient Performance in Two Agent Bargaining’, (1987) 41 J. Econ. Theory 154; J.C. Rochet, ‘Some Recent Results in Bargaining Theory’ (1987) 31 Europ Econ Rev 326.
9
R. Flannigan, ‘The Economic Structure of the Firm’, (1995) 33(1) Osgoode Hall Law J. 105 at p. 124 and p. 128.
10
See Williamson, Markets and Hierarchies: Analysis and Anti-trust Implications, op. cit., p. 10.
11
Ibid., p. 14.
12
O.E. Williamson, ‘Hierarchical Control and Optimum Firm Size’, in O.E. Williamson, Economic Organization: Firms, Markets and Policy Control (New York: New York University Press, 1986) pp. 32-53 (first published as an article in 1967 in the J. of Political Economy).
13
Williamson, The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting, op. cit., pp. 133-135.
14
See W. Baumol, J. Panzer and R. Willig, Contestable Markets and the Theory of Industry Structure (New York: Harcourt Brace Jovanovich, 1982), and W. Baumol, ‘Contestable Markets: An Uprising in the Theory of Industry Structure’, (1982) 72 American Econ. Review 1.
15
Ibid.
16
Williamson, The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting, op. cit., Chapter. 13.
17
G.L. Priest, ‘The Origins of Utility Regulation and the “Theories of Regulation” Debate’, (1993) 36(1) J. of Law and Econ. 289.
18
V. Goldberg, ‘Regulation and Administered Contracts’, (1976) 7 Bell J. of Economics 426.
19
M.J. Trebilcock, The Prospects for Reinventing Government (Toronto: C.D. Howe Institute, 1994) at p. 13. Another way of stating this would be that government will find it more efficient to contract out than to produce the service itself where, first, information asymmetries between the parties are small and there is adequate information available on costs, prices, and quality, thus reducing the scope for opportunistic behavior and, second, there is competition within or for the market (which depends to a large measure on the degree of investment in specific assets and substitutability thereof).
20
K.J. Crocker and S.E. Masten, ‘Regulation and Administered Contracts Revisited: Lessons from Transaction-Cost Economics for Public Utility Regulation’, (1996) 9(1) J. of Regulatory Econ. 5.
21
Possibly this problem of hold-out could be mitigated by locally based clinics with staff capable of triage and with ambulance and helicopter providing transport to larger centers with a number of hospitals. The viability of this option will depend on the cost and the impact on patients’ safety and cost.
22
By this I mean that a new general practitioner (having satisfied all relevant licensing requirements) could readily enter the market as a supplier.
23
For a discussion see M.L. Barer and L. Wood, ‘Common Problems, Different “Solutions”: Learning from International Approaches to Improving Medical Services Access for Underserved Populations’, (1997) 20(2) Dalhousie Law Journal 321.

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