[lliamander]

Thanks for chiming in! I am fairly impressed with your analysis, but I am somewhat perplexed as to figuring out "what do we do now?"

It seems that if we want to fix our satisfaction with our healthcare situation (in the U.S.), we have to fix a couple of issues:

- we have to mitigate the "endogenous factors" that contribute to poor health outcomes (i.e. people have to live healthier lifestyles).

- we have have to find a way to encourage people to self-ration their own medical spending in a way that doesn't adversely affect their own health outcomes.

Do you think a more free-market based approach to healthcare consumption would fix these issues? How do we address lack of information? How do we address the motivational issues that lead us to both live unhealthy lifestyles and to spend money on unhelpful medical care?

edit: fixed formatting