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> incentivized to overpay for care to maximize the size of their 20% slice. This. You see it anytime you mandate some profit cap or limit as a percentage of r
by londons_explore 2y ago
> incentivized to overpay for care to maximize the size of their 20% slice.
This.
You see it anytime you mandate some profit cap or limit as a percentage of revenue. Companies will just manipulate the other variable to get more profits. Or they'll buy other related companies so they can do sneaky internal pricing shenanigans.
- lotsofpulp 2y agoOnly if no competitors exist, or all the competitors are colluding.
- londons_explore 2y agoI feel like nearly every industry is colluding, at least a little, with a "we wont screw you over if you don't screw us over" approach. Competition focuses on trying to expand the market, rather than screwing a competitor and stealing all their clients.
- lotsofpulp 2y agoThat is a unnecessarily narrow definition of competition, and businesses don’t steal clients (absent illegal methods), they provide better products or services at a preferable utility to price ratio such that customers choose them over another business. Just like a person performing better in a job interview isn’t stealing from other applicants who performed worse.