Re:What are some examples of inefficient markets?
by AnimalMuppet on Friday February 07, 2020 @08:32PM
(#22273080)
Real estate is a very inefficient market. I say that because the transaction costs are high compared to the value of the transaction.
Medical in general is very inefficient, for several reasons. Many of us don't get to choose our insurance company - our employer chooses them, and we don't have any option. (I'd like to see companies offer at least two competing insurance plans from different companies.) Second, we talk to doctors on the basis of "do I need it", not on the basis of "what's the cost, what's the benefit". Third, the doctors' office has people whose job is to try to get insurance companies to pay, and the insurance companies have people whose job is to try to find reasons not to pay. That's rather inefficient. There's probably some other big inefficiencies there, too.
Medical in general is very inefficient, for several reasons. Many of us don't get to choose our insurance company - our employer chooses them, and we don't have any option. (I'd like to see companies offer at least two competing insurance plans from different companies.) Second, we talk to doctors on the basis of "do I need it", not on the basis of "what's the cost, what's the benefit". Third, the doctors' office has people whose job is to try to get insurance companies to pay, and the insurance companies have people whose job is to try to find reasons not to pay. That's rather inefficient. There's probably some other big inefficiencies there, too.