Reputational Good

Health care is sometimes regarded as a reputational good or service, though the term does not have wide currency or a widely accepted meaning. By this seems to be meant that the market for health care is characterized by price-searching and by substantial information costs, especially as regards the quality of service offered by different providers in the market. One common means of acquiring information about the attributes of various local providers is to ask the opinions of friends, neighbours and the current clients of various providers; that is, to seek information about the reputation of the providers.

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