TOPIC:Contrast the role of information in competitive market and in the health care markets. Include in your answer a discussion of perfect information, information asymmetry. Market responses such as agency and the government’s role with respect to information in the health care market
This paper interplay between the competitive and health care markets and the role of agency and government regarding health care market responses. The concept of health covers the psychological and physiological changes of human life. World Health Organisation affirmed health as a complete state of physical, mental and social well-being(Ghosh, 2008). In competitive markets structured with perfect information and obligation cost, helps consumer to have same information as the supplier. Whereas the information asymmetry in health care market lead to market failure (Ghosal, 2012).The concept of market need to be known in order to understand much about competitive and health care markets. In socio-economic perspective, a market is said to be an institution ensures the exchange of products and goods among buyers and sellers. Increase and decrease in price indicates the market function. It’s a natural and neutral process of exchanging goods among sellers and buyers according the current demand. When price becomes high suppliers are happy to supply the good, whereas consumers wait for the price to come down. If price become equilibrium, market is said to be cleared. Then the quality of the market makes it strong for excessive demand from the consumer. In such situations government try to regulate the economy(Ghosh, 2008).
Some believes the term ‘competitive as market competitiveness, and other’s understand competitive as cost(Tyler, 2014). Whereas in a competitive market there are many sellers and buyers and they may have a proper information about the product and look for the cheap prices with good quality, here no one is...