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"Standard theories of insurance, dating from Rothschild and Stiglitz (1976), stress the role of adverse selection in explaining the decision to purchase insurance. In these models, higher risk people buy full or near-full insurance, while lower risk people buy less complete coverage, if they buy...
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data, I then show that this type of demand heterogeneity is empirically relevant in a consumer health plan setting. Younger … and older consumers and men and women reveal strikingly different demand for health insurance, conditional on their …
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