Uncertainty and the welfare economics of medical care: an Austrian rebuttal Part 2
By G. Berdine. 2017
793 citations recorded by the source corpus.
Abstract Part 2 of this 3 part series continues a rebuttal to Kenneth Arrow’s famous argument that health care is special and free market economic principles do not apply. The rebuttal is based on concepts of Austrian Economics. Part 1 of the series framed the debate and discussed general concepts. Part 2 discusses specific examples of how health care is special and does not behave according to market principles. Uncertainty of demand and uncertainty of outcome are discussed in detail. Information asymmetry is a special form of uncertainty that Kenneth Arrow claimed was somewhat unique to health care. Free market solutions to these problems are discussed in general with specific examples provided. The conclusions are that free market insurance (as opposed to subsidy) handles uncertainty of demand, branding handles uncertainty of outcome, and the free market for specialized information handles information asymmetry.
Subfields: Economics and Econometrics, General Health Professions
View Paper: https://www.semanticscholar.org/paper/f17a420661762c9dd455fb5f03640ce88416d234
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Citations in the corpus
- Towards a taxonomy of research misconduct: The case of business school research (2019, background): ““I was told not to self-cite”) but with evidence of premeditation and/or covering of tracks Rational Choice (Arrow, 1963) Entrepreneurial risk-return perspective (Honig et al.”
- Optimal reinsurance designs based on risk measures: a review (2020, methodology): “Using a different optimisation criterion from Borch (1960)’s model, Arrow (1963) maximises the expected utility of the insurer’s final wealth and obtains a similar result in favour of stop-loss reinsurance.”