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|Title:||In absolute or relative terms? How framing prices affects the consumer price sensitivity of health plan choice |
Ziebarth, Nicolas R.
|Issue Date:||2011 |
|Series/Report no.:||Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6241|
|Abstract:||This paper provides field evidence on (a) how price framing affects consumers' decision to switch health insurance plans and (b) how the price elasticity of demand for health insurance can be influenced by policymakers through simple regulatory efforts. In 2009, in order to foster competition among health insurance companies, German federal regulation required health insurance companies to express price differences between health plans in absolute Euro values rather than percentage point payroll tax differences. Using individual-level panel data, as well as aggregated health plan-level panel data, we find that the reform led to a sixfold increase in an individual's switching probability and a threefold demand elasticity increase.|
health plan switching
|Persistent Identifier of the first edition:||urn:nbn:de:101:1-201202285103|
|Document Type:||Working Paper|
|Appears in Collections:||IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)|
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