One of the major assumptions in an efficient marketplace is that people have equ

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One of the major assumptions in an efficient marketplace is that people have equ

One of the major assumptions in an efficient marketplace is that people have equal            information concerning an item that they wish to purchase. We wish to know the quality of an item before buying it and certainly the price we will pay. Hidden factors such as annual license fees or hidden taxes not stated in the advertisement give one party an advantage over the other. For example, when you sign up for cable TV, the price quoted does not         often include a near doubling of the final cost due to taxes and fees added after the sale.  In healthcare, such items as quality of an implant and expected life are not something       that the average patient is aware of, and he or she is then unaware that the price may     differ on the basis of these factors. Stainless steel hip joints may be less expensive than     titanium ones but may not last as long, for example. Information asymmetry is common    in healthcare as you, as a patient, are perhaps dealing with someone with decades of        training in a field you are not knowledgeable about. This may make the market                    assumption invalid.
Tasks:
One of the major assumptions in the free-market model is that consumers and providers have all the information that is needed to make decisions on purchases:
Discuss areas of information that a prospective patient might need concerning a       surgical procedure at a surgical center.
Discuss whether that information is available.
Discuss how that information might be made available.
To support your work, use your course and textbook readings. As in all assignments, cite    your sources in your work and provide references for the citations in APA format.
Your initial posting should be addressed at 300–500 words as noted. Be sure to cite your   sources using APA format.
Additioanl Reading:
Title:
The Economics of Health Reconsidered
Author:
Thomas Rice, PhD
Lynn Unruh, PhD
Edition/Copyright:
4th edition; 2016
Publisher:
Health Administration Press
ISBN:
978-1-56793-723-7

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