One factor that enters the specialty choice of new medical school graduates is the income potential of the specialties. If these incomes are not determined in a competitive labor market, then it is possible that the number entering a given specialty will not meet efficient level. The current system, dominated by Medicare and large insurance companies, is not competitive. Some claim that lack of competition in the market is responsible for shortages in some specialties.
a. What are the conditions for a competitive market for specific medical specialties? Are these conditions met in our health care system?