But in your health care example you have predictability for the population, but not for the individual. Insurance makes sense, especially w/o the market distortions.
On Sat, Dec 01, 2007 at 01:23:57PM -0800, raghu wrote: > > in the case of > health care each individual's needs may not be that unpredictable. For > instance older people over 75 years of age, it is a near certainty > they will require some form of medical care in the form of checkups, > medicines etc. Even for one individual the probability of medical > expenses is large maybe 50%. > -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com
