Asymmetrical Information and Public Failure in the Myriad Decision

Abstract

The Public Value concept is a Public Management normative process that utilizes efficiency and ethics as co-equal determinants to assess organizational outcomes. As such, Public Value represents what Ghoshal calls intellectual pluralism or the utilization of normative management processes in the social sciences to challenge the intellectual absolutism of the Chicago School. One discipline where Public Value can be used to assess normative results is Legal Studies' antitrust field. This research applies Public Value criteria in evaluating the U.S. Supreme Court's 2013 ruling in Association for Molecular Pathology v. Myriad Genetics. The conclusions tentatively found the Court's decision will (a) create Public Value at the macro level but (b) trigger public failure at the micro level for poor women because of an asymmetrical information network. This outcome fits with Stiglitz's hypothesis concerning asymmetrical information and market failure. Further empirical research on Myriad's policy is recommended.