I think part of the problem is that "highly regulated" is an ill defined term. For certain definitions of "highly regulated", the NASDAQ is highly regulated, yet we don't see much price distortion there. The "problem", I think, is with the nature of the regulation, and the nature of the supply/demand equation for medical care.
One simple example, which I don't really have time to explain here, is the health insurance system which makes it so that people generally do not consider price when purchasing medical care. Of course that is going to lead to price distortions.
Another simple example is the inflexibility in the supply of doctors, which is ultimately due to government regulations (many would argue that this is a good thing)
One simple example, which I don't really have time to explain here, is the health insurance system which makes it so that people generally do not consider price when purchasing medical care. Of course that is going to lead to price distortions.
Another simple example is the inflexibility in the supply of doctors, which is ultimately due to government regulations (many would argue that this is a good thing)