This article empirically tests the theory that prices are affected by consumer information. It develops an empirical model (the increasing monopoly model) based on the notion that an increase in the number of sellers of a "reputation" good may cause price to increase because such an increase...

This paper examines the welfare effects of fee splitting or kickbacks paid by one physician to another in return for patient referrals. This practice is regarded as unethical and illegal in most cases, but it is shown that in a principal-agent context it is possible for fee splitting to offer...