This paper investigates consumer switching costs in the context of health insurance markets, where adverse selection is … at a large firm where we also observe individual-level panel data on health insurance choices and medical claims. We … toward better decisions by reducing switching costs. This policy increases welfare in a naive setting where insurance plan …

This paper describes the results of a web-based multi-period insurance purchasing experiment focusing on how … individuals make insurance choices for low-probability, high-consequence events. Participants were told the probability and … decided to purchase insurance after learning that they had suffered a loss and revealing that they were unhappy about having …

We show how standard consumer and producer theory can be used to estimate welfare in insurance markets with selection … straightforward. We illustrate our approach by applying it to the employee health insurance choices at Alcoa, Inc. We detect adverse …

We present a graphical framework for analyzing both theoretical and empirical work on selection in insurance markets … insurance allocation, social welfare, and public policy. We then discuss several important extensions to this classical … treatment that are necessitated by important real world features of insurance markets and which can be easily incorporated in …

Much of the extensive empirical literature on insurance markets has focused on whether adverse selection can be … insurance market appears to be. Instead, an explicit model of insurance contract choice is required. We develop and estimate … mandatory social insurance may be harder in practice than simple theory may suggest. …