| Unequal Information |
|
|
|
|
|
|
|
|
|
|
| n | Moral hazard
and adverse selection help to |
||||||||
| explain why a
free market in health insurance |
|||||||||
| is unlikely
to be efficient. |
|||||||||
| n | However,
health care markets face even |
||||||||
| more
fundamental information problems. We |
|||||||||
| are now going
to examine the problems |
|||||||||
| caused by
unequal information and the |
|||||||||
| consequent
role of doctors as agents for |
|||||||||
| patients. |
|||||||||