Competitive procurement is commonly used when government contracts with private firms to provide public services, such as road and bridge construction. However, competitive procurement in health insurance marketing is rarely studied. The nature of the selection market makes the impact of competitive procurement ambiguous ex-ante because the value of winning the bid is determined by downstream competition with self-selection consumers. This project will study the welfare impact of competitive procurement in the selection market in the context of the Medicaid Managed Care market.…Read More