cost sharing. Both elements risk to burden the population with a welfare loss if preferences differ. This suggests …

Health insurance is potentially subject to risk selection, i.e. adverse selection on the part of consumers and cream … skimming on the part of insurers. Adverse selection models predict that competitive health insurers can eschew high-risk … individuals by offering contracts with low deductibles or co-payment rates, while attracting low-risk individuals with higher …

risk increases with the initial level of risk. Their reasoning is based on differences in the marginal utility of wealth …: first, for a risk-averse individual without a bequest motive, marginal WTP for survival does increase with the level of risk … initial risk on WTP for survival is reversed: the higher initial risk the lower the value of a statistical life. …