Market Power

Musings by an academic economist on the power of markets and the power over markets.

Sunday, February 27, 2005

Non-Price Rationing

John Palmer at the Eclectic Econoclast has this post on subsidized medicine and this post on socialized medicine (medicine "subsidized" by Balco). What happens when the price of a service gets lowered below its market-clearing level (usually to make it more affordable for those with low incomes)? Many things develop, one of them being a waiting list.