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This is similar to how medical insurance or student loans drive up prices. Divorcing consumers from the cost of these services causes them to be less price sen
by gnarbarian 9y ago
This is similar to how medical insurance or student loans drive up prices.
Divorcing consumers from the cost of these services causes them to be less price sensitive. Even if they ultimately end up paying higher premiums there is no direct feedback occuring at the time the exchange takes place. So consumers are less thrifty, and there is less pressure to drive down prices through competition.
- criddell 9y ago>Divorcing consumers from the cost of these services causes them to be less price sensitive. When a family member collapses and you call an ambulance, I can't imagine anybody being particularly price sensitive.