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This is the most complete text available on the economics of health behavior and health care delivery. Appropriate both for advanced undergraduate and beginning graduate students of economics, this text provides the key analytical tools required to understand current research. Issues discussed include the cost explosion in health care, the power of medical associations, the search for remuneration systems with favorable incentives, and technological change in medicine. Rather than simplifying the issues facing today's healthcare systems, the book models existing complexities as they are, adapting economics to reflect the views of the average person.