Canadian Healthcare and Economics of Relationships

Wouldn’t it be great if you could pay some extra money to move to the front of the line in those long waiting lists for Canadian healthcare? Marginal Revolution describes the case of one guy who is trying to buy a spot in line from someone closer to the front. The economic implications are very interesting; auctions like this are a win-win rather than a zero-sum situation.

Another post today on Marginal Revolution discusses the Economics of Relationships. It’s a contrived analogy, but sort of fun, and you should be able to extend the analogy far beyond the boundaries of the examples (for example, is there an equilibrium point if the person with the shorter clock has more suppliers? are certain demands interchangable or ?fungible? like in CPI? and so on…)

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