The response of the dominant firm to competition: The Ocean State Case
作者:
Lawrence Goldberg,
Warren Greenberg,
期刊:
Health Care Management Review
(OVID Available online 1995)
卷期:
Volume 20,
issue 1
页码: 65-74
ISSN:0361-6274
年代: 1995
出版商: OVID
关键词: antitrust in health care;Ocean State competition in health care;most-favored-nation clause
数据来源: OVID
摘要:
The Ocean State antitrust case illustrates the operation of the competitive marketplace in health insurance. Blue Cross, the dominant firm in Rhode Island, responded competitively to the entrance of a new competitor, Ocean State, in three ways: 1) a most-favored-nation clause, 2) creation of a PPO offering similar benefits as Ocean State, and 3) an adverse selection policy. These actions are assessed to be legitimate competitive responses and the decisions of the higher courts overturning the jury verdict against Blue Cross are supported.
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