Fifteen years ago Joseph Stiglitz won the Nobel Prize for his research on information asymmetries and their impacts on free markets. In his report for the Roosevelt Institute entitled “Rewriting the Rules of the American Economy” he recommends a fresh look at anti-trust, at intellectual property rights, at global trade agreements and at government roles in negotiating health prices. http://rooseveltinstitute.org/rewriting-rules-report.
He points out that we have moved quite drastically from a manufacturing economy to a service and knowledge economy and that the 100 year old anti-trust rules from the turn of the 19th century into the 20th need to be updated to reflect a very different economy.
Health care is a classic case of market failure for several reasons: the asymmetric information about health care effectiveness between the patient and the providers, the third party payer role of the insurer or government, and the natural plan and provider monopolies in rural America and the oligopolies created by hospital system and health plan mergers.