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competition in basic health insurance markets. We identify several barriers to switching, namely choice overload, status quo bias …
Persistent link: https://www.econbiz.de/10013076435
Persistent link: https://www.econbiz.de/10014287903
The purpose of this paper is to conduct a theoretical and empirical analysis of the nexus between long-term care insurance (LTCI), formal care, informal (family) care, and bequests. In our empirical analysis, we use micro data from the Japan Household Panel Survey on Consumer Preferences and...
Persistent link: https://www.econbiz.de/10015047826
This paper studies a market for a medical product in which there is perfect competition among health insurers, while …
Persistent link: https://www.econbiz.de/10012581345
This paper studies a market for a medical product in which there is perfect competition among health insurers, while …
Persistent link: https://www.econbiz.de/10013221173
savings they would obtain if they were to switch water tariff. Our empirical framework separates two sources of inertia … opportunity they are offered and that, conditional on paying attention, median switching costs are £89. A model where all … customers are assumed to pay attention instead delivers implausibly high switching costs, with a median of £482. Looking at the …
Persistent link: https://www.econbiz.de/10012592066
Countries that seek to provide universal health coverage deal with considerable publicly funded expenses. This article discusses if a private health insurance subsidy policy can reduce the expenses covered by the public system. A theoretical model is developed in which individuals are...
Persistent link: https://www.econbiz.de/10014132406
Switching costs are generally regarded as anti-competitive as firms can raise prices to "locked-in" consumers, at least up to the cost of switching to a lower-priced alternative. However, there is some evidence, both theoretical and empirical, that tends to show the opposite. Namely, suppliers,...
Persistent link: https://www.econbiz.de/10012861041
Consumers choosing flat-rate contracts tend to have insufficient usage to warrant the cost, particularly for new products. We propose and estimate a Bayesian learning model of tariff and usage choice that explains this "flat-rate bias'' without relying on behavioral misjudgments or...
Persistent link: https://www.econbiz.de/10014059541
This paper generalizes the standard habit formation model to an environment in which agents form habits over individual varieties of goods as opposed to over a composite consumption good. We refer to this preference specification as 'deep habit formation'. Under deep habits, the demand function...
Persistent link: https://www.econbiz.de/10014073602