Asymmetric Information and Privatization of Health Care

Abstract

In the 21st Century, knowledge is seen as a commercial meta. Via knowledge we obtain reputation and the power in everyday life, and, knowledge is a source of profit in the commercial life. Accessing information has become easier through, the mass media becoming widespread. However, in some complex products or services, superficial information may not be enough to differentiate effectively among the choices and make a good decision. Buyers and sellers should have the necessary knowledge about the goods on the market, the costs, the profit and the quality factors in order for the market to function effectively. Buyers and sellers should also have the same level of information so that health care could become a marketable service in a perfectly competitive market. This situation, which is known in health economics, will be examined through knowledge and asymmetric information issues within the scope of the study.