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Impact of a financial risk-sharing scheme on budget-impact estimations: a game-theoretic approach

Author

Listed:
  • Arieh Gavious
  • Dan Greenberg
  • Ariel Hammerman
  • Ella Segev

Abstract

In reaction to applying a substantial risk-sharing rebate α on the manufacturer, both players are expected to adjust their budget estimates toward an optimal equilibrium. Increasing α is a better vehicle for reaching the desired equilibrium rather than increasing γ, as the manufacturer’s rebate α substantially influences both players, whereas γ has little effect on the players behavior. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Arieh Gavious & Dan Greenberg & Ariel Hammerman & Ella Segev, 2014. "Impact of a financial risk-sharing scheme on budget-impact estimations: a game-theoretic approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(5), pages 553-561, June.
    • Handle: RePEc:spr:eujhec:v:15:y:2014:i:5:p:553-561
    DOI: 10.1007/s10198-013-0544-6
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    References listed on IDEAS

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    1. Gregory S. Zaric & Bernie J. O'Brien, 2005. "Analysis of a pharmaceutical risk sharing agreement based on the purchaser's total budget," Health Economics, John Wiley & Sons, Ltd., vol. 14(8), pages 793-803, August.
    2. Shani, Segev & Siebzehner, Miriam Ines & Luxenburg, Osnat & Shemer, Joshua, 2000. "Setting priorities for the adoption of health technologies on a national level -- the Israeli experience," Health Policy, Elsevier, vol. 54(3), pages 169-185, December.
    3. Pedro Pita Barros, 2011. "The simple economics of risk‐sharing agreements between the NHS and the pharmaceutical industry," Health Economics, John Wiley & Sons, Ltd., vol. 20(4), pages 461-470, April.
    4. Hammerman, Ariel & Greenberg, Dan, 2009. "Estimating the budget impact of new technologies added to the National List of Health Services in Israel: Stakeholders' incentives for adopting a financial risk-sharing mechanism," Health Policy, Elsevier, vol. 89(1), pages 78-83, January.
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    Cited by:

    1. Hanna, E. & Toumi, M. & Dussart, C. & Borissov, B. & Dabbous, O. & Badora, K. & Auquier, P., 2018. "Funding breakthrough therapies: A systematic review and recommendation," Health Policy, Elsevier, vol. 122(3), pages 217-229.
    2. A. Carletto & A. Cicchetti & S. Coretti & V. Moramarco & M. Ruggeri, 2019. "Money back guarantee? A cost–benefit framework of performance-based agreements (PBAs) for the reimbursement of pharmaceuticals," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(1), pages 89-101, March.
    3. Roy Lothan & Noa Gutman & Dan Yamin, 2022. "Country versus pharmaceutical company interests for hepatitis C treatment," Health Care Management Science, Springer, vol. 25(4), pages 725-749, December.
    4. Biancalani, Francesco & Gnecco, Giorgio & Riccaboni, Massimo, 2022. "Price-volume agreements: A one principal/two agents model," European Journal of Operational Research, Elsevier, vol. 300(1), pages 296-309.
    5. Shuli Brammli-Greenberg & Ira Yaari & Elad Daniels & Ariella Adijes-Toren, 2021. "How Managed Entry Agreements can improve allocation in the public health system: a mechanism design approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(5), pages 699-709, July.

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    More about this item

    Keywords

    Risk sharing; Health plans; Pharmaceutical industry; Budget impact; I11; C79;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other

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