Price Discrimination in the Field of Medical Services:Evidences from the Special Need Clinic in China
Special need clinic is a price discrimination strategy adopted by hospitals to increase their profits.By constructing a game model,this paper analyzes the resource allocation behavior of hospitals to general and special need clinics and the impact of special need clinics on the welfare of different types of patients,and further analyzes the effect of quantity regulatory policies.The subgame perfect Nash equilibrium of this game model shows that if the government does not adopt any regulatory policy,then the hospital will allocate all resources to the special need clinic and the welfare of all patients is impaired.When the government adopts a quantity regulatory policy,the damage of price discrimination to the welfare of patients is reduced,but the welfare level of special need clinic patients and general outpatients remains reduced.From the perspective of protecting patients'welfare,the government should further improve the regulatory policy system to restrict the development of special need clinic.
Special need clinicPrice discriminationGame theoryRegulatory