Game theoretic considerations for Kenyan health governance

Abstract

Transparency is essential if any public provisioning function is to gain widespread legitimacy. Even though most governmental processes are complex and long-term, the public must have some trust and confidence that the processes are legitimate. In theory, the ‘ideal type’ good governance requires innovative personnel able to realize substantial public benefits, including improved service quality, risk sharing with the private sector, and cost savings. The paper argues that heath care administrators and service providers need to incorporate game theoretic considerations in their practice in order to achieve market-driven competition, equitable risk sharing, effective performance guarantees, and appropriate transparency.

Key words: Game theory, social capital, good governance, health policy, health systems.