MGEC34H3 Lecture : Untitled.pdf

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With imperfect info, improve pro ts by inducing consumers to buy more output. Cats will be higher because of advertising, so that also shifts up mc curve. Another model used: more in usa vs. cda. Dentists in canada similar to his model. Asses to what extent geographic variation in per capital utilization. Rates re ect imperfect info about the most effective of alternative treatments. Look at diff communities and compare the medical utilization they have. Want to identify area with similar demographics and compare difference in example: amount of c sections given. This is known as practice style hypothesis: How a physician is trained determines how they treat a condition.

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