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Uwe E. Reinhardt, PhD

JAMA. 1999;281:462-465.

	Since this article does not have an abstract, we have provided the first 150 words of the full text and any section headings.

The article by Baker on the relationship between managed care penetration and health expenditures for fee-for-service Medicare beneficiaries in this issue of THE JOURNAL¹ touches on an important facet of health policy: attempts to influence the individual physician's style of medical practice. To understand what policy levers may be used to that end, health services researchers have long been interested in the factors that drive physician behavior.

Economists have traditionally modeled self-employed physicians as the owner-managers of business firms. These managers are assumed to maximize their own happiness by balancing the desire for more income against the desire for more leisure time.^2-3 Some economists assume that on occasion physicians may sell to their patients services that fully and accurately informed patients would not have demanded at the prices charged by the physician, if these patients had the physician's skills.^4-5

A model presented by Zweifel and Breyer⁶ . . . [Full Text of this Article]

Author Affiliation: Princeton University, Princeton, NJ.

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