When my dog Buddy ate a tub of chewing gum – around 60 pieces – we rushed him to the vet, where he stayed overnight. Thankfully he was fine. The same could not be said for our wallets.

Two aspects of the experience with the vets stood out to my inner economist. First, the bill was far higher than the initial quote. Second, we were encouraged to approve further tests, but the vet seemed uncomfortable recommending them and quickly accepted our decision not to proceed.

Experiences like this seem to be increasingly common. Prices for veterinary services have risen sharply in recent years, and many pet owners say they find it difficult to understand or predict what they will be charged.

Higher prices don’t necessarily mean that the market isn’t working as it should. But there are features in the veterinary market that limit how effectively competition works – and changes in the UK have compounded these issues. This prompted an investigation by the Competition and Markets Authority (CMA), which issued its final report in March.

Read more: High vet bills have eroded pet-owners’ trust – but vets aren’t getting rich from their fees

There’s a reason the word “trust” appears 90 times in the CMA’s report. Healthcare is not like buying groceries or new shoes – it’s what economists call a “credence good”. Similar to car........

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