Year: 1979
Type: report
Abstract: When the quality of a good varies, quantity in physical units may be a very misleading measure of total consumption.In this paper it is argued that differences in quality are a distinguishing feature of the market for physicians' services.We develop a model to analyze properties of demand functions for the quantity and quality of physicians' services and apply the model to study the demand for pediatric care-physicians' services rendered to children.The theoretical model of quantity-quality substitution provides a framework for demand analysis whenever the market for a good is distinguished by a quality component.When the quality of a good varies, quantity in physical units may be a very misleading measure of total consumption.This point long has been This is a condensed version of Goldman and Grossman (1976).The longer version is available on request.
DOI: 10.3386/w0134
Authors: Fred Goldman, Michael Grossman
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2890592666