The Pricing of Primary Care Physicians' Services: A Test of the Role of Consumer Information
AbstractThis article empirically tests the theory that prices are affected by consumer information. It develops an empirical model (the increasing monopoly model) based on the notion that an increase in the number of sellers of a "reputation" good may cause price to increase because such an increase makes consumer search less efficient. The model is tested with data on the prices of primary care physicians' services in 92 SMSA's. The increasing monopoly model is found to be superior in explanatory power to a model based on the modified target income theory of physician pricing.
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Bibliographic InfoArticle provided by The RAND Corporation in its journal Bell Journal of Economics.
Volume (Year): 12 (1981)
Issue (Month): 2 (Autumn)
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Web page: http://www.rje.org
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- Carlton, Dennis W. & Perloff, Jeffrey M., 1989.
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25156, University of Connecticut, Food Marketing Policy Center.
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- Stephen T. Parente & David Salkever & Joan DaVanzo, 2003. "The Role of Consumer Knowledge of Insurance Benefits in the Demand for Preventative Health," NBER Working Papers 9912, National Bureau of Economic Research, Inc.
- Alvin Headen, 1987. "Price discrimination in physician services markets based on race: New test of an old implicit hypothesis," The Review of Black Political Economy, Springer, vol. 15(4), pages 5-20, March.
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