If you're going to take the point that incentives don't matter, you're going to have to back it up, because it sounds like you're saying that capitalism - the profit motive - doesn't work. Is ordering an extra test - just in case - malpractice? Is not doing another scan, because it's expensive, morally superior? Are you saying that we should expect economically efficient care from doctors out of their benevolence?
"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest." Are doctors different?
Adverse selection is also a pretty basic economics concept. You can read more about its applicability to health insurance here - and cites more:
"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest." Are doctors different?
Adverse selection is also a pretty basic economics concept. You can read more about its applicability to health insurance here - and cites more:
http://ideas.repec.org/p/wbk/wbrwps/2574.html