In the first part of this series, I presented the rationale for government intervention in the health sector and, then, summarized the findings of Stabile and Thomson (2014) on the problems of financing and risk pooling in different health systems. In this second part I continue with the problems on demand, coverage decisions, evaluation and […]
Insurance markets are far from meeting the conditions that make competitive markets efficient. Here is an incomplete but illustrative list of problems in the case of health insurance: Externalities : my health quality affects me, but also affects people around me, like in the case of contagious diseases. Economic theory predicts that consumers will not […]
This is the English version of a section in Ferreira (2014) , a paper dedicated to overview the experiments in Industrial Organization that appeared in Revista de Economía Industrial, and is reproduced here with the permission of the journal. Until a couple of decades ago many of the so called natural monopolies were regulated through […]
This is the English version of a section in Ferreira (2014) , a paper dedicated to overview the experiments in Industrial Organization, to appear in Revista de Economía Industrial, and is reproduced here with the permission of the journal. The great majority of water collection and distribution in the world rely on a central authority […]
This is the English version of a section in Ferreira (2014) , a paper dedicated to overview the experiments in Industrial Organization, to appear in Revista de Economía Industrial, and is reproduced here with the permission of the journal. In 1994, the American FCC (Federal Communications Commission) decided to conduct an auction to allocate the […]
In Economics, an efficiency wage is defined as a wage above the equilibrium price paid to obtain a more efficient job from the employee. For this to be the case, there must be some sort of market failure that prevents the equilibrium from being efficient. One such a scenario occurs when there are some forms […]
Slonim et al . (2014) discuss the problems of blood allocation in different countries and suggest a mechanism that can improve it. The present article is a summary of their main ideas. In the wealthy countries blood is mostly supplied via voluntary donations. The way blood is collected varies from country to country. Some have […]
You play rock-paper-scissors against someone. What is the best strategy? Of course, it depends of what your opponent does. If he is someone who always plays “rock”, then you better play “paper”. But if your opponent is not that naïve and searches for his best play, what would you do? The first thing to notice […]
This month I present the winner article of the Royal Economic Society Prize 2013 to the best non-solicited paper published in the Economic Journal. The authors are Pau Olivella and Marcos Vera-Hernández. One of the first predictions in the study of Economics of Information is the presence of the “adverse selection” phenomenon. The seminal paper […]
Economic models of perfect competition and of monopoly only need to include individual behavior that takes the environment as given. In the case of perfect competition, individual firms and consumers only need to know the prevailing market prices to decide their purchasing and production plans, whereas the monopolist needs to know the demand it faces […]