I hate to keep linking to these stories on a paid site because not everyone subscribes, but this one was too good. According to a Wall Street Journal story,
Some frustrated dieters are doing what once would have been unthinkable -- eating more to gain pounds to qualify for weight-loss surgery.
While celebrities like singer Carnie Wilson and weatherman Al Roker are boasting of dramatic results from their own weight-loss surgeries, a darker side to the sometimes risky procedure is beginning to emerge. Desperate patients who are turned down for the surgery because they don’t weigh enough are returning to doctors’ offices weeks or months later after intentionally gaining 10, 15 or even 25 pounds to qualify.
What could be a better example of unintended consequences associated with incentives? This is an illustration of how difficult it can be to provide some kind of help or assistance to people without creating a moral hazard problem.
Posted by Robert Blumen
