Faculty Publications


An alternative perspective on information asymmetry; Implications for consumer authority in physician services markets.

SelectedWorks Author Profiles:

Richard B. Smith

Document Type


Publication Date


Date Issued

January 2005

Date Available

October 2011


This paper looks at the impact of patient knowledge on utilization and quality in physician services markets, developing a theoretical framework based on an alternative to the “market failure” perspective first proposed by Arrow (1963). Specifically, this paper looks at how outcomes in physician services markets are determined by whether patient and physician knowledge are substitutes or complements in health production. Empirical testing of the theoretical predictions indicates patient and physician knowledge have changed from substitutes to complements in recent years, and that this change may be hindering a more consumer-driven market from ensuring high quality outcomes.


Abstract only. Full-text article is available only through licensed access provided by the publisher. Published in Journal of Economics & Management Strategy, 14, 665-699. DOI: 10.1111/j.1530-9134.2005.00078.x Members of the USF System may access the full-text of the article through the authenticated link provided.




MIT Press

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.