"key thing to pay attention to is who this marketing campaign was targeted at: key decisionmakers at providers and insurance companies. Those are the people who decide whether medical procedures get ordered. It’s not patients. Patients aren’t going to experience a loss of freedom or satisfaction because an expert reviewer at the Independant Payment Advisory Board makes the call as to whether a procedure is medically beneficial, rather than the corresponding bureaucrat at their insurance provider or at the for-profit clinic they’re attending"
gets paul to this :
http://www.aeaweb.org/aer/top20/53.5.941-973.pdf
that's arrow's now classic analytics of an ... exceptional market : health services
pre dating akerloff's not so exceptional used car market model
and apres that ??... the eclectic deluge
which gets me to this:
the culminating greenwald stigiltz theorem ( GST )
revisited here by dixit:
http://www.princeton.edu/~dixitak/home/StiglitzFest_Dixit.pdf
"Among the hundreds of papers Joe has written on information economics, the one
with Greenwald (1986) surely ranks near the top. It establishes a conceptual parallel
between asymmetric information and technological externalities, and shows that a
competitive equilibrium of an economy with asymmetric information is generically not
even constrained Pareto efficient ...but !!!!!!!
A government facing the same information constraints as the private individuals in the economy
can nevertheless find Pareto-improving policy interventions."
-dixit-
what was it about trading beaver pelts for deer meat that seemed so univerisal
neoclassics made all markets structurally identical ...errrr except for the exceptions ???
or fresh fish at dock side ???
or gold on an exchange .... ...oops !!!! calling doctor mallinvaud !!!!
adverse currents
dancing frolicing asymmetries
market self immolation
unnatural sellection pressures
survival of the credit worthy or at least credit connected
product markets plus or minus free range ad blitzing
all this
hardly proving universal or even near universal reign of markets as optimal
and after the coming of the GST in the mid 80's
yes all that long ago now
why not more shouts of
"no mercatian "dike "
no mercodicy
for you... mr plutonic"
from the windows of the ivory tower ???
maybe we wild childs
of the post neoclassic post eclectic dispensation
need to remove the walrasian homoginization process
once and for all ....eh
past master of leon's dairy ken arrow himself
drank straight from raw markets
once more for the road:
the GST
"shows that a competitive equilibrium of an economy with asymmetric information
is GENERICALLY NOT EVEN PARETO OPTIMAL " !!!!!!
"shows that a competitive equilibrium of an economy with asymmetric information
is GENERICALLY NOT EVEN PARETO OPTIMAL " !!!!!!
