Markets in health care

This article offers a general overview of different ways in which market competition in the provision of health insurance and healthcare services have been introduced in different countries. The authors discuss (1) how does the market equilibrium come about when price is not the main instrument to allocate resources; (2) the advantages and pitfalls of the market mechanism in the presence of risk and information asymmetries; and (3) whether the regulator should set limits to decision making and choice. It is also meant to be a guide in these issues throughout the entire encyclopedia. A brief teachers guide is also offered.