a. Many HMOs pay their doctors based, in part, on how many patients the doctor sees in

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a. Many HMOs pay their doctors based, in part, on how many patients the doctor sees in a day. What problems does this incentive system create?
b. If HMOs pay their doctors a fixed salary, what problems does this incentive system create?
c. Ideally, we would like to pay doctors based on how long their patients live! What problems exist in implementing this type of system?
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Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

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