Asymmetric information in the market for health care occurs when sellers of medical care are better informed about cost and quality of care than buyers.

Question

Quizplus · Accepted Answer

Asymmetric information means there is a difference in information between the buyer and the seller. In the market for health care, doctors and hospitals have more information about the cost and quality of care they provide than patients, making it difficult for patients to make informed decisions about their health care.

Asymmetric Information in the Market for Health Care Occurs When