ABSTRACT
The market for health care involves the interaction of three types of agents: patients, providers, and third-party payers with different levels of information. These information asymmetries give rise to the agency problem that is the central topic of this chapter. The study of how to provide incentives to the different agents to achieve the objective of an efficient provision of health care services, and the conflict of objectives due to the information asymmetry, complete the contents of the chapter. The study of the supplier-induced demand in the health care sector illustrates the main arguments.
