Calibrating Institutions: Regulating Innovation and AI in Medicine

The article analyzes the concept of calibrating institutions as essential structures for correcting information asymmetry between medical technology providers and patients. Drawing on the 'market for lemons' theory and the notion of 'credence goods', the author indicates that patients are unable to independently assess the quality of modern health solutions. The text pays particular attention to the so-called regulatory perimeter problem—the regulatory gap between wellness products and medical devices. In this grey area, innovations often bypass rigorous evidentiary requirements, influencing users' health decisions without adequate oversight. The goal of calibrating institutions is therefore to create a framework that protects patient autonomy, preventing the premature implementation of technologies with hypothetical benefits while simultaneously supporting valuable innovations.