New HCHE Research Paper: Choosing Health ("Supplemental") Insurance in Relation to Willingness to Pay and Deductibles - An Experiment.
26 June 2023, by Andrea Bükow
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What decisions do consumers make when choosing their health insurance? Who has which preferences and why? To better understand this, participants in a controlled laboratory experiment were asked to make insurance decisions one after the other, given a constant health risk. The results differ in particular in the willingness to pay to insure against diseases that occur rarely and cause high costs, and in the preference to forgo deductibles. However, when the quality of individual decisions is measured based on risk preferences, heterogeneity across participants disappears.
HCHE Research Paper Heterogeneity in Health Insurance Choice: An Experimental Investigation of Consumer Choice and Feature Preferences, Hermanns, B.; Kairies-Schwarz, N.; Kokot, J.; Vomhof, M.