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

Keith M.Marzilli Ericson*, Amanda Starc

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

15 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)71-85
Number of pages15
JournalJournal of Health Economics
Volume50
DOIs
StatePublished - Dec 1 2016

Keywords

  • Consumer choice
  • Framing
  • Health insurance
  • Standardization

ASJC Scopus subject areas

  • Health Policy
  • Public Health, Environmental and Occupational Health

Fingerprint Dive into the research topics of 'How product standardization affects choice: Evidence from the Massachusetts Health Insurance Exchange'. Together they form a unique fingerprint.

Cite this