But in terms of price, the HMO does better. From the ex ante perspective, this combination of quality and price explains why rational individuals choose to enroll in these plans. The greatest problem with respect to regulation in the United States is that in political markets, failures always dominate. In economic markets, successes count equally well. The political market turns on scandal and failure.
Economic markets function in an ex ante world that rewards the honest revelation of preferences.
If you are in the ex ante mode, you'll opt for markets. If you're in the ex post mode, you'll opt for socialism. Too many people live in the ex post world. It would be tragic indeed if a system of central planning that has failed everywhere it has been tried becomes the treatment of choice for our health care ills. Special to the Hoover Digest .