Several of the alleged market failures in the provision of health services actually reflect economic scarcity and therefore are best dealt with by market institutions, not government interventions. The market-failure interpretation of health-service problems that arise from adverse selection, moral hazard, and the doctor-patient relationship shows a fundamental misunderstanding and misapplication of basic economics.


Other Independent Review articles by Stephen Shmanske
    Winter 2006   The Monopoly Nonproblem