The longstanding debate about government oversight is giving way to a new understanding of how to craft more effective industry rules.
Regulation of pricing transparency at US hospitals can give the appearance of lowering costs, but research suggests that the payments made by patients and their insurers for five representative medical procedures have not decreased.
Investors use the payments as a proxy for financial strength
The principles of transparency and disclosure are visible everywhere from fast-food menus to financial regulation. But if lawmakers don’t consider the behavior of both markets and consumers, better information may not translate to smarter shoppers.
Policymakers have succeeded in using financial regulation to effect nonfinancial change.