“The North Carolina Board of Dental Examiners was established under North Caroli
ID: 1114076 • Letter: #
Question
“The North Carolina Board of Dental Examiners was established under North Carolina law and charged with administering a licensing system for dentists. A majority of the members of the board are themselves practicing dentists. North Carolina statutes delegate authority to the dental board to regulate the practice of dentistry, but did not expressly provide that teeth whitening was within the scope of the practice of dentistry. Following complaints by dentists that non-dentists were performing teeth-whitening services for low prices, the dental board conducted an investigation. The board subsequently issued cease and desist letters to dozens of teeth-whitening outfits, as well as to some owners of shopping malls where teeth-whiteners operated. The effect on the teeth-whitening market in North Carolina was dramatic.”
Many would argue that it is obvious that dentists should serve on the board of the system that licenses dentists, since they have the expertise to certify quality. Given the information in this chapter, aside from ensuring quality, why else might dentists find it in their interest to control the licensing system? Why do you think there were complaints and an investigation that teeth were being whitened “for low prices?”
Explanation / Answer
The dentists without the license have an incentive to charge a lower price as compared to those holding the license. It is beneficial for the dentists to control the licensing system because holding the license will act as a signal and this will deter the entry by those the others. As a result the profit will increase for the densists and the formal dentistry will increase seeing the profit in the long run thus moving to an efficient level. The complains were due to bad quality service which also malign the high quality dentists service also.
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