But if we get something along these lines, coupled with an insurance exchange, it should make it much harder for insurance companies to compete by engaging in bad behavior, while creating an incentive for them to compete along the lines we want them to compete on: better customer service, better access to providers, and so on.
Fixing prices weakens the incentive for hospitals to compete on cost and makes it harder for them to compete on quality where this involves more expensive treatments.
Because they are government-controlled, they have little incentive to compete for consumers' deposits.
At present, schools are incentivised to boost their performance by seeking examinations in which they believe their students may achieve higher grades, and Awarding Organisations have a corresponding incentive to compete for market share by providing less demanding examinations.
"It's a catch-22 situation - people aren't switching because there's little difference between the big banks' current accounts and, because people aren't switching, banks have little incentive to compete for customers.
So while they go to benefits in designer gowns to one up each other, I sit at home and watch them on television in Target sweatpants.Minorities often live clustered together with similar socio-economic backgrounds; this gives them a greater incentive to compete for wealth and status.
Therefore, the profit margin (and thus the incentive to compete for patients) will also be greater if the level of the fixed price includes investment costs [12].
One way to do this is with what I call "super-regulation," which involves developing a market for licensed private regulators that serve two masters: achieving regulatory targets set by governments but also facing the market incentive to compete for business by innovating more cost-effective ways to do that. .
Because the point of grid parity has not yet been reached in many parts of the world, solar generating stations need some form of financial incentive to compete for the supply of electricity.
Probably the biggest one is that financing most of the insurance system through the risk pools reduces the incentive for insurers to compete by holding down costs.
