This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 102 No. 3 (May 2012)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Heuristics and Heterogeneity in Health Insurance Exchanges: Evidence from the Massachusetts Connector

Article Citation

Ericson, Keith Marzilli, and Amanda Starc. 2012. "Heuristics and Heterogeneity in Health Insurance Exchanges: Evidence from the Massachusetts Connector." American Economic Review, 102(3): 493-97.

DOI: 10.1257/aer.102.3.493

Abstract

We examine heuristic decision rules in consumer choice on health insurance exchanges using data from the Massachusetts Connector. Consumers may have difficulty making optimal choices in a complex environment. The heuristic "choose the cheapest plan" is suggested by the decision context, previous research, and the data: about 20% of enrollees choose the cheapest plan possible. We find evidence of this heuristic in many models, but while heuristics may play a role, preference heterogeneity is also important. Our most flexible models find an insignificant heuristic effect. In part because holding context fixed, this heuristic is observationally equivalent to extreme price sensitivity.

Article Full-Text Access

Full-text Article

Authors

Ericson, Keith Marzilli (Boston U)
Starc, Amanda (U PA)

JEL Classifications

G22: Insurance; Insurance Companies
I18: Health: Government Policy; Regulation; Public Health
H75: State and Local Government: Health; Education; Welfare; Public Pensions
I13: Health Insurance, Public and Private


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us