Improving patient compliance with physicians’ treatment or prescription recommendations is an important goal in medical practice. This paper examines the causal relationship between treatment progress and patient compliance. We hypothesize that patients balance expected benefits and costs...

This paper re-examines the relation between the predictability of health care spending and incentives due to adverse selection. Within an explicit model of health plan decisions about service levels, we show that predictability (how well spending on certain services can be anticipated),...