Home
/
RELIGION & LIBERTY ONLINE
/
Stossel and Symmetric Information
Stossel and Symmetric Information
Sep 1, 2026 1:00 AM

Jim Aune, blogger-in-chief at The plained yesterday about his health care treatment. He says, “I have been in constant pain for 36 hours. I actually used a cane to go to the office yesterday for some meetings. The problem? I have a trapped nerve in my abdomen from a double hernia repair a year ago. I got shot up with steroids about 3 weeks ago, and that worked for about 5 days, but I still can’t walk without a ripping sensation (as if my right leg were being separated from my side).”

That sounds horrible. He continues: “I’m about to go see the doctor again today (he’s a nice guy, as family practice doctors usually are, as the anesthesiologist at the pain clinic), so I decided to read up on the Internets about this condition. Now, a little learning, especially online, is a dangerous thing, but it appears that entrapped nerves have gone from happening in 1% of hernia repair patients to closer to 40%, and the speculation is that the new use of plastic mesh is a possible cause.”

It seems that Aune somehow associates John Stossel with his problem. “Enter the biggest jackass on television: John Stossel of 20/20, who believes that the market solves all problems, and that any government intervention in that frictionless market creates no end of bad ‘unintended consequences.'”

What is Aune’s argument against Stossel? After citing a Daily Kos item, Aune contends, “markets are wonderful things, but they only work in cases of ‘symmetric information.’ That is,they work efficiently when both parties to an exchange have nearly similar information.” (Last night’s episode of ER dealt with a very similar issue).

Markets only work in cases of symmetric information. Is this true? Or is the opposite true? Hayek’s observations about the nature of diffuse and unequal information are the basis for his arguments against the practicality of state intervention. As Steven D. Levitt and Stephen J. Dubner put it in their book Freakonomics, “We accept as a verity of capitalism that someone (usually an expert) knows more than someone else (usually a consumer).” Medical care isn’t the only example of information asymmetry, of course. Typical ones include car sales, or especially car repair, but they can apply in any instance where there is particular expertise involved.

Levitt and Dubner go on, “But information assymetries everywhere have in fact been mortally wounded by the Internet.” Now it is true that in practice, as in Aune’s experience, there are all kinds of limits on the potential for the Internet to even out information. It takes time, access, and a certain amount of patience to educate oneself about certain medical conditions, for example. Thus Levitt and Dubner go on to admit, “The Internet, powerful as it is, has hardly slain the beast that is information asymmetry.”

Aune later asserts, “markets do not work efficiently when information is asymmetric.” Maybe they don’t work as efficiently as they might otherwise, but they still seem to work, and perhaps better than any other option available to us. And there are methods for the sharing of information and such that does not necessitate government involvement (independent ratings, consumer reviews, and the like).

It’s not clear what Aune’s solution is (if there is one in plaint), but I take it that Aune is arguing at least implicitly that the government needs to be the entity that solves the problem of information asymmetry. Would he rather have no choices, even the limited ones he is inadequately informed about, and instead have the government decide for him? Why don’t we just make doctors government employees? Then they can enforce the course of treatment they deem best.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Religious Liberty Does Not Require Us To Minimize Our Faith
Rabbi Meir Soloveichik, a professor at Yeshiva College in New York, says religious liberty does not mean we need to water down our beliefs in order to get along. Rather, he says that people of different faiths must learn to live as both “stranger and friend“: The rabbi explained that “America is the first country in a long time founded around an idea,” and that religious freedom “is the philosophical lynchpin of what lies at the heart of American ideals.”...
Samuel Gregg: Charles Carroll, Founding Father and Catholic Businessman
Acton’s Director of Research, Samuel Gregg, has a column in the latest issue of Legatus magazine. In it, he recognizes the plishments and Catholic faith of one of America’s Founding Fathers, Charles Carroll. Carroll, the only Catholic signer of the Declaration of Independence, was an established businessman, and signing the Declaration was a risky move. It literally put his entire fortune at risk. mercial interests extended far beyond those of the typical Marylander of his time. They ranged from grain...
Interview: Conversations on Orthodoxy
Back in January, I was interviewed for the podcast Conversations On Orthodoxy. After some wonderful editing, the interview has recently been posted. In particular, the focus of the interview is mostly on how I went from an American Evangelical upbringing to ing a convert to the Orthodox Church. However, I wanted to link to it here because it concludes with some thoughts about my work at Acton. In particular, I talk about Acton’s vision for a free and virtuous society,...
Dirt and Development
“We poverty junkies spend a lot of time examining the fruits and the roots,” says Mark Weber at PovertyCure, “But what of the soil?” Tyler Cowen also recently noted that economists don’t talk nearly enough about soil, despite their contributing to some of the biggest problems in the entire world. The problems can be seen in the European Union’s Institute for Environment & Sustainability recently published Soil Atlas of Africa. Robin Grier highlights some of the findings: 1. “While Africa...
G8 Summit Protests Sponsored by Capitalism
Leaders from Canada, France, Germany, Italy, Japan, Russia, the U.S., and UK will meet at Lough Erne in Northern Ireland for the G8 Summit June 17-18, 2013. These international negotiations among the world’s largest economies provide opportunities to discuss the fluidity of trade between nations but also provokes public protest. All over social media, various groups are set to organize protests about the global trade conference because capitalism and international trade are viewed as evil. For example, the “Stop G8...
You Say You Want A Revolution? Count The EU Out
German Finance Minister Wolfgang Schaeuble is a frustrated man. With unemployment rates in Germany hovering at around 8 percent, and Greece and Spain at almost 60 percent, he believes the EU is on the brink of “revolution.” His answer is not to scrap the welfare model however; he wants to preserve it. While Germany insists on the importance of budget consolidation, Schaeuble spoke of the need to preserve Europe’s welfare model. If U.S. welfare standards were introduced in Europe, “we...
Don Draper Meets Abraham Kuyper
Russell Moore on how Abraham Kuyper predicted the era of Madison Avenue’s culture of art and mammon: [James Bratt] writes that Kuyper saw the bination of “Art as captured by Mammon.” Here the bined to a mercialized, lowered, prostituted, feeding the pulsion for excitement, excess, and the erotic.” In this, Bratt contends that Kuyper was hitting close to explaining the contemporary rise of Madison Avenue as a cultural force, “the marriage of Art and Mammon that mercial advertising.” Here’s where...
A Lesson in Economic Policy from Mother Teresa
Forbes‘ Ralph Benko explains what a chance encounter with Mother Teresa taught him about good economic policy: I had walked by a homeless man (or, as then was called, bum) sleeping on the 41st Street sidewalk. People sleeping on the sidewalk were a familiar sight in the New York City of that era. I hadn’t even noticed him. But Mother Teresa had noticed him. And she had stopped to get him to his feet. As I approached the group, Mother...
How Did the Global Poverty Rate Halve in 20 Years?
From 1990 to 2010, the global poverty rate dipped from 43% to 21%. The Economist explains why the rate halved in twenty years: How did this happen? Presidents and prime ministers in the West have made grandiloquent speeches about making poverty history for fifty years. In 2000 the United Nations announced a series of eight Millenium Development Goals to reduce poverty, improve health and so on. The impact of such initiatives has been marginal at best. Almost all of the...
New Acton University Billboard in Grand Rapids
Acton University is fast approaching. As a way to greet our speakers and attendees we’ve placed this billboard on 131 South near the Wealthy St. Exit. If you’re in Grand Rapids, be sure to check it out! ...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved