We study how competition between physicians affects the provision of medical care. In our theoretical model physicians … are faced with a heterogeneous patient population, in which patients systematically vary with regard to both, their … benefits as long as patients are able to respond to the quality provided. For those patients, who are not able to choose a …

probability of switching physicians. We also study whether a physician with unfavorable characteristics, as perceived by patients … patients, has a huge effect on the volume of patients switching physicians. We also find that although physicians who … experience patient shortages in general provide more services to their patients than physicians who have enough patients, the …