The Rising Price of Physicians' Services: A Clarification

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Abstract
Several years ago, one of us presented a model of the market for physicians' services (Feldstein, 1970). In a subsequent comment, Brown and Lapan ( 1972) raised several questions about the model and the conclusions. Unfortunately, this comment and the reply by Feldstein ( 1972) left a number of issues unsettled. Some of the disagreement was based on misunderstanding and on drawing infer­ ences from different theoretical models. After the publication of the comment and reply, we continued to pursue the basis of our disagreements. The cur­ rent note is an attempt to clarify the issues that were raised but not resolved in the previous ex­ change.
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