Abstract
Peculiarities of the health care sector, such as externalities and asymmetric information, result in conditions that do not meet the requirements of the first theorem of welfare economics for a Pareto-optimal allocation, viz. perfect competition, profitmaximizing firms and utility-maximizing individuals as market participants.
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Bezzola, M., Martinsson, P. (1998). Overview of the Two Systems. In: Zweifel, P., Lyttkens, C.H., Söderström, L. (eds) Regulation of Health: Case Studies of Sweden and Switzerland. Developments in Health Economics and Public Policy, vol 7. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-4052-6_2
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DOI: https://doi.org/10.1007/978-1-4615-4052-6_2
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