Abstract:
Of the many -physician decisions that have been studied, pricing of specific medical procedures is of particular interest, given the recent inflationary trend in medical care prices and the widely held view that medical care is a "merit want." The national experience with such "demand-shift" medical care programs as Medicare and Medicaid has shown quite clearly the unfortunate consequences of not taking into account the potential price responses to such programs. Moreover, the debate over alternative national health insurance systems, with their varying implications for medical care costs and prices, adds to the current policy importance of an examination of how physicians set their fees...
