Since the purchasers of health care services cannot easily determine the quality of the services,purchasers may assume that

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Since purchasers cannot easily determine the quality of health care services, they may assume that high prices are an indicator of high quality. This is known as the "price-quality inference." However, this assumption is not always accurate as some high-priced services may not necessarily be of high quality and vice versa.

Since the Purchasers of Health Care Services Cannot Easily Determine