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By gullchasedship (registered) - website | Posted April 16, 2009 at 20:08:30
I haven't read the study, but I wonder if the think-tank considered the time waiting for the service into the transaction cost.
Typically in a situation where you can only get the service from the government, the easiest way the government can limit cost is by limiting the service, thereby increasing wait times.
This doesn't appear to affect the transaction cost, whether this means waiting in line at a license office, or waiting at home for a knee-replacement, but it sure costs the consumer, whether it's time they could be spending elsewhere, or in extended pain and suffering.
Why do you think people go to Buffalo or Bellingham for knee replacements?
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