Abstract
We present lab experiments that utilize a new three-player game designed to capture key features of care provision. We discuss results from the baseline game and test two sets of treatments designed to gauge the impact of potential policy interventions. The first varies the budget subsidy provided to the care manager, and the second alters the effectiveness (or productivity) of the care worker. We find that budget subsidies increase the expenditure of the care manager only slightly. Changes in the care worker’s efficiency significantly impact the well-being of the care recipient.
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