Different actors posses various information in education and health care sector which is not shared effectively. There is a need to push the information asymmetry in the direction towards perfect information. This information asymmetry severely gives incentive to the education, health care sector and reduces the consumer surplus. The signaling of the producer takes place via internet, news paper etc. and there is no system to verify whether the signals are accurate.
For example, If you want to join a music school, language class, computer class, dance etc., there is no information available to the customer about the services except the investigation by word of mouth. The producers of the service advertise effectively via website and Google ads. If the contacts of the person joining the course is reduced, then he is disabled with the information further and leaving him with no choice. It is also applicable to the university ranking since majority of the ranking agents produce ranks for the university and not significantly for the course. And moreover the ranking is not debatable for the public, I.e., there is no ranking or reviewing options available for the public to challenge.
This is also similar in terms of health care sector. In the developing countries, hospital exploits the insurance scheme given by private/ Public to create the wealth out of the schemes. This severely hampers the growth in health care policy in the developing country. Also the service of the hospital and general practitioners were not measured due to the inability of the system. And it takes a considerable amount of time for the person to bring the actors into the limelight for giving poor service.
For solving the asymmetric information in education and health care sector, I thought of a business model which I would like to share in this blog. First of accumulation of data around the country is necessary in education and health care sector. In education, data of course provider by individual, private company and university should be accumulated and in terms of health care, data of hospitals, general individual practitioners, insurance company etc. should be accumulated. Then the data website should be converted into free access, free content site similar to Wikipedia. The rating and review for the above data should be added for the education and health care sector.
For example, the student can freely give the comment and review on his graduate studies in the university by choosing the anonymous name. He can add the list of courses he is studying for his Bachelor/ Masters course and also he can add the list of books he is using for the particular course. In this way information can be liberalized. Similar can be done in health care sector. In this way we can enhance the education and health care sector.