We consider physicians with fixed capacity levels. If a physician's capacity exceeds demand, she may have an incentive … ; incentives ; medical doctors ; demand inducement ; insurance … to overtreat, i.e., she may provide unnecessary treatments to use up idle capacity. By contrast, with excess demand she …

We consider physicians with fixed capacity levels. If a physician's capacity exceeds demand, she may have an incentive … to overtreat, i.e., she may provide unnecessary treatments to use up idle capacity. By contrast, with excess demand she … first show that simple fee-for-service reimbursement schemes do not provide proper incentives. If insurers use, however, fee …

Using a large set of private health insurance claims, we estimate how physicians’ financial incentives affect their … treatment choices in heart attack management. Different insurance plans pay physicians different amounts for the same services …, generating the required variation in financial incentives. We begin by presenting evidence that, unconditionally, plans that pay …