Supplier-induced demand and small-area variations problems are, in practice, identical problems." True or false?

False. Supplier-induced demand is when individual physicians use their place of trust to generate demand for personal gains, such as encouraging more frequent doctor visits than is necessary for a healthy, hypochondriac wealthy patient. Small-area variations are an institutional and societal problem, when there are wide discrepancies in rates of surgery, physician visits, and hospitalization between populations, reflecting an asymmetry of community information (Nichols 2005:202). In the former, doctors may encourage unnecessary treatment or visits to increase payments...

(2005). "Supplier Induced Demand." Chapter 10. Retrieved 6 Mar 2008 at http://dnichols.wustl.edu/352sp2005/supplier%20induced%20demand.pdf
Pauly, Mark V. (8 Sept 2006). "Adverse Selection and Moral Hazard: Implications for Health Insurance Markets. "Oberlin College Health Economics Conference Retrieved 6 Mar 2008 at http://www.oberlin.edu/economic/Papers/HealthConf/Pauly_Adverse%20Selection%20and%20%20Moral%20Hazard_Oberlin_September06.doc