## Abstract We show that the intuition underlying the supplier‐induced demand (SID) hypothesis is reflected in the cheap‐talk literature from game theory, and in the credence‐good literature from the economics of information. Applying these theories, we conclude that a neoclassical version of the S
The physician–patient relationship: the impact of patient-obtained medical information
✍ Scribed by Bin Xie; David M. Dilts; Mikhael Shor
- Publisher
- John Wiley and Sons
- Year
- 2006
- Tongue
- English
- Weight
- 304 KB
- Volume
- 15
- Category
- Article
- ISSN
- 1057-9230
- DOI
- 10.1002/hec.1098
No coin nor oath required. For personal study only.
✦ Synopsis
Abstract
We investigate the impact of patient‐obtained medical information (POMI) on the physician–patient relationship when patients, as a group, are heterogeneously informed and a physician's interests do not coincide with those of her patients. Introducing additional well‐informed patients to the population discontinuously affects the physician's strategy, having no effect unless a sufficient quantity is added. When few patients are well informed, increasing the precision of their information level has no effect on the physician's strategy. Alternately, when a sufficient number of well‐informed patients exists, increasing the precision of their information allows all patients to free‐ride by receiving more appropriate treatment recommendations.
Counterintuitively, we also identify circumstances under which increasing the general level of information may potentially harm patients. Copyright © 2006 John Wiley & Sons, Ltd.
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