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Analysis of Cooperative Game between Insurance Company and Care Institution in the Long-Term Care Insurance

In order to solve moral hazard caused by induced consumption of care provider in the long-term care insurance market, a "risk-sharing, benefit-sharing" incentive mechanism is suggested by referring to foreign medical insurance management pattern in paper. However, that need to establish an appropriate form which can secures mutual profit sharing. The paper uses cooperative game model in order to solve the best proportion of profit sharing under the precondition of cooperation between insurance companies and care institutions. What's more, we analyze the conditions for sustained cooperation.