The relationship between physician and patient has been discussed intensively in the literature. Nevertheless, they neglect the fact that the production of health not only depends on the medical services supplied by the physician but is also influenced by the patient's compliance. We present a...

The paper presents a principal-agent model to analyse the relationship between physicians and patients. The application of the standard principal-agent model shows some shortcomings of the analysis when being implemented into the field of health economics. Therefore it is necessary to look at...