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

S-Tier
Journal: American Economic Review
Year: 2012
Volume: 102
Issue: 3
Pages: 493-97

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:aea:aecrev:v:102:y:2012:i:3:p:493-97
Journal Field
General
Author Count
2
Added to Database
2026-01-25