Differential Games in Health-Care Markets: Models of Quality Competition with Fixed Prices

We present a review of models that investigate quality competition in health care markets under price regulation, taking a differential-game approach. We analyse and discuss three different variants of a unified modelling framework, each of which incorporates specific institutional and behavioural characteristics of health care markets. In each case we derive and compare equilibrium strategies under open-loop and feedback closed-loop information structures. We also address potential policy implications from these analyses.