Regulation of medical professions

The Market Failure Justification for the Regulation of Professional Service Markets and the Characteristics of Consumers

“…Their evidence suggests that it is what they describe as 'market forces' which are most important. Olsen (2002) in a review of the empirical literature on licensure in medical professions 9 concludes that the evidence is mixed and varies across both time and the professions covered. Button and Fleming (1992) studied the licensing of architects in the UK but found no conclusive evidence of an impact on incomes.…”

“…This is possibly explained, asOlsen (2002) implies, by the normative nature of the market failure approach and the positive nature of the capture theory. The empirical evidence is usually marshalled by those looking for evidence that regulation acts to the benefit of the profession and not the consumer.…”