Question
Health insurance is normally seen as a good that is most valuable to sick people, since health expenditures are highest for the sick. Yet,
Health insurance is normally seen as a good that is most valuable to sick people, since health expenditures are highest for the sick. Yet, actuarially-fair health insurance is worth nothing to people who are certain to become sick (p = 1). Why does the standard model produce this result? How is this different from the way real-world insurance markets work?
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The standard economic model produces the result that actuariallyfair health insurance is worth nothing to people who are certain to become sick becaus...
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Management A Practical Introduction
Authors: Angelo Kinicki, Brian Williams
5th edition
978-1111821227, 9781133190363, 1111821224, 1133190367, 978-0078112713
