Health Care Quality, Income Transfer and International Trade: A Theoretical Analysis

Chatterjee, Tonmoy and Gupta, Kausik (2016): Health Care Quality, Income Transfer and International Trade: A Theoretical Analysis.

Abstract

This paper deals with the aspect of trade in health services in the form of health care quality innovation from North to South in the presence of well established state interference in South. In accordance to the above mentioned scenario we have framed a theoretical structure where our health care is acting as a monopoly and the government has detected income transfer from richer people of South to the poorer section of South as an action to heal the welfare of the society. From such kind of set up we have discussed several possibilities through which a South based Multinational Health Service Provider (MNHSP) can export their health care quality innovation to the patients of North. Overall, we find price discrimination of the MNHSP between the Southern branches of MNHSP and the Northern branches of MNHSP with some standardisation is the main source of trade in health care innovation at least in our case.

• Item Type: MPRA Paper
• Language: English
• Keywords: Health quality innovation, International trade, Full information dynamic game and Income transfer
• Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory; D - Microeconomics > D4 - Market Structure, Pricing, and Design; F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation; F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; I - Health, Education, and Welfare > I1 - Health > I11 - Analysis of Health Care Markets

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