Bryan Caplan  

Becker on Adverse Selection via Regulation

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What Will the Supermarket Look... The Progressive Tantrum...
The problem of adverse selection: Insurance companies can't perfectly tailor rates to risk.  The standard government "solution": Forbid insurers from tailoring rates to risk.  Yet another example, courtesy of Gary Becker:
Since private insurance companies are not allowed to charge higher premiums to the obese because that is considered discrimination, largely under the Americans with Disabilities Act, the higher cost of obesity paid by privately insured persons can hardly be called an "externality", unless it is considered an externality from government policy.
P.S. The wheels are in motion for me to debate David Balan on free-market health care this semester before the GMU Econ Society. Stay tuned! 


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dWj writes:

Externalizing internalities.

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