Incomplete information issues pervade health care markets, with market participants often having relatively little information, and their behavior exhibiting corresponding aberrations from classic market behavior.Consumers often have relatively little information about prices and quality offered...

The Reagan administration has again proposed in 1984 to limit the tax exemption on health-insurance premiums. Objectives of the proposal are to curtail rising health costs by reducing insurance coverage-and hence medical-care use-and to raise revenues to offset the large federal deficit. The...