How product standardization affects choice: Evidence from the Massachusetts Health Insurance Exchange

B-Tier
Journal: Journal of Health Economics
Year: 2016
Volume: 50
Issue: C
Pages: 71-85

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

This paper examines the effect of choice architecture on Massachusetts' Health Insurance Exchange. A policy change standardized cost-sharing parameters of plans across insurers and altered information presentation. Post-change, consumers chose more generous plans and different brands, but were not more price-sensitive. We use a discrete choice model that allows the policy to affect how attributes are valued to decompose the policy's effects into a valuation effect and a product availability effect. The brand shifts are largely explained by the availability effect and the generosity shift by the valuation effect. A hypothetical choice experiment replicates our results and explores alternative counterfactuals.

Technical Details

RePEc Handle
repec:eee:jhecon:v:50:y:2016:i:c:p:71-85
Journal Field
Health
Author Count
2
Added to Database
2026-01-25