Heterogeneity in Health Insurance Choice : An Experimental Investigation of Consumer Choice and Feature Preferences
We investigate heterogeneity in patterns of preferences for health insurance features using choice data from a controlled laboratory experiment. Participants make consecutive insurance choices based on choice sets that vary in composition and size. In addition, we implement a treatment that entails a feature-based insurance filter, allowing us to validate feature preferences. We also account for individually elicited risk preferences. We find that there is considerable heterogeneity in consumer choice. Participants differ particularly (a) in their willingness to pay to insure themselves against illnesses that differ in terms of their probability of occurrence and the size of the losses to be covered and (b) in their preference to forgo deductibles. However, if we measure the quality of individuals’ decisions based on risk preferences, the heterogeneity among participants disappears. Our results suggest that heterogeneity is not reflected in decision quality when we assume a rank-dependent expected utility model of risk preferences
Year of publication: |
[2023]
|
---|---|
Authors: | Hermanns, Benedicta ; Kairies-Schwarz, Nadja ; Kokot, Johanna ; Vomhof, Markus |
Publisher: |
[S.l.] : SSRN |
Subject: | Konsumentenverhalten | Consumer behaviour | Krankenversicherung | Health insurance | Präferenztheorie | Theory of preferences | Experiment | Verhaltensökonomik | Behavioral economics |
Saved in:
freely available
Extent: | 1 Online-Ressource (49 p) |
---|---|
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 8, 2023 erstellt |
Other identifiers: | 10.2139/ssrn.4429303 [DOI] |
Classification: | C91 - Laboratory, Individual Behavior ; i13 ; D81 - Criteria for Decision-Making under Risk and Uncertainty ; D83 - Search, Learning, Information and Knowledge ; G22 - Insurance; Insurance Companies |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014356517