Jaegher, Kris De; Jegers, Marc - In: Health Economics 10 (2001) 7, pp. 651-668
We show that the intuition underlying the supplier-induced demand (SID) hypothesis is reflected in the cheap-talk literature from game theory, and in the credence-good literature from the economics of information. Applying these theories, we conclude that a neoclassical version of the SID...