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ECO 365 – Intermediate Microeconomics - Select Term or Date 生态365–中级微观经济学-选择日期或学期
Lecture Notes – Physician Services Market Why do we have physician firms? (and what do they do?) dual role of physician firms the physician as an input into the production of physician services Demand for physician services is a derived demand. Affected by Economic factors Prices, Income, insurance coverage, prices of competing goods Affected by Non-economic factors Age, Illness events, education, marriage, etc. the physician as owner and entrepreneur Supply of Physician Services is derived from other end of market (input markets) such as: Physician Labor, nurses labor, technical assistants, etc. Capital and equipment the physician services firm vs. the market vertical and horizontal integration (whats that?) What is the alternative? Compare internal (integration) vs. external (market) systems. Health care has moved away from the market toward internal system with government regulation. possible goals of the physician firm profit leisure (of who?) patients health What are the relationships? important issues to be addressed demand side or allocative efficiency supply side or technological efficiency public policy implications Demand Side Performance Overriding issue is allocative efficiency but difficult to measure either benefits or costs = How to assess allocative efficiency? variations in physicians fees between areas/physicians how should fees vary in a perfectly competitive market? if patients have incomplete information and must search? if quality differences exist between physicians? empirical predictions Consider 2 different goods – standardized glaucoma test vs. surgery for, say, prostate cancer – Which would have the largest variation in fees even when the market is competitive (but with asymmetric information)? Glaucoma test – why? Doesn’t pay to search for the best deal for small budget item. is the market for physicians services competitive? empirical results Conclusions = ? Get large variation even for large budget items = Evidence tha
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