Doctors do this all the time, there is even a term for it called "supplier induced demand." In a normal setting you'll see that as the number of suppliers for a

Doctors do this all the time, there is even a term for it called "supplier induced demand." In a normal setting you'll see that as the number of suppliers for a particular good or services in creases, demand should decrease as there are too many in the industry. What doctors have done is they induce demand by changing the way they offer their services. For example spending more time with customers or offering better service. This is why in such areas as Beverley Hills where there are hundreds of plastic surgeons they still all charge you a premium price. They all offer the same service, but because they can induce demand by their name and skill and location they make more, all of them. Also this is one of many factors why the health care in America cost so much. Doctors can pretty much make up their own pricing. The more specialist the more you can charge, so everyone suddenly claims they are specialist doctors so they can charge you $1000 for clipping your nails.