Why is there an asymmetric information problem in the market for health care?

Question

Quizplus · Accepted Answer

The physician, not the patient, knows most about the amount and type of health care to be provided. This creates an asymmetric information problem because the patient may not have enough knowledge about their own medical condition or the appropriate treatments, so they cannot fully evaluate the quality of care they are receiving. The physician has more information, which can lead to them exploiting this information advantage to provide unnecessary treatments or charge higher fees.

Why Is There an Asymmetric Information Problem in the Market