4 ms·
If it was a working market, with published MSRP and true competition, price discrimination could theoretically be used to increase surplus. But it's not current
by guylhem 14y ago
If it was a working market, with published MSRP and true competition, price discrimination could theoretically be used to increase surplus. But it's not currently a market!
At the moment, it's not. I'm not concerned with dogma so much - I care about efficiency. Ideally, all regulations would be removed.
But we are not starting from scratch - we have the current status of healthcare. We want to go to a working market - the question is how can we do that?
Enforcing uniform prices is a step in the right direction - because the uninsured will stop subsidizing the abnormal low rates insurance companies can strongharm the hospital.