Decision making in quasi-markets: a pedagogic analysis

Reforms to the UK National Health Service were introduced in Apr. 1991 to cut too much vertical integration by implementing a quasi-market where incentive structures and greater availability of information would allow decision makers to more effectively use resources. However, a general framework with which to examine the welfare gains or losses resulting from the quasi-market is yet to be implemented. To correct the situation, an analytical framework of a quasi-market within which distortions such as cream skimming and local monopoly can be investigated.