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This study examines the relationship between supply of primary physicians and consumersatisfaction with access to, and quality of, primary physician services in Norway.The purpose is to throw light on a long-standing controversy in the literature on supplierinducement SID : the interpretation of the positive association between physician density Ž .and per capita utilization of health services. We find that an increase in the number ofphysicians leads to improved consumer satisfaction, and that the relationship betweensatisfaction and physician density exhibits diminishing returns to scale. Our results suggestthat policy-makers can compute the socially optimal density of physicians without knowledgeabout whether SID exists, if one accepts the controversial assumption that consumer Ž .satisfaction is a valid proxy for patient utility. q 2000 Elsevier Science B.V. All rightsreserved
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