Incentives

This article from the WSJ show how people respond to incentives. It describes the responses by passengers to baggage fees. 

This article shows how people respond when someone else pays the bill. It describes the difficulty hospitals have controlling prices paid for implantable devices. Here is a money quote.

"Hospitals long have struggled to control costs for implantable devices in part because physicians typically choose which product to use while hospitals, patients and insurers foot the bill, hospital executives say."