Friday, April 12, 2013
Competition, Choice and Health Insruance
Came across this chart on efficient selections and number of different plan options, found it interesting. I am drinking so I am not going to write much. Basically, more choices lead to worse outcomes. However, I always find it fascinating when I see a concrete and accessible example of more choices to worse outcomes (in a less controlled environment a freer market is generally seen as being more choices and assumed to lead to better outcomes). Observationally, I find this unsurprising; I see it happen all the time. Conceptually, however, I know a lot of people have problems wrapping their heads around this kind of thing. We need better conceptions of choice and economic reasoning.