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This individual prefers no insurance to full contract. 11 Assume that Jay discovers, to his dismay, that his 2014 healthy-state income will be lower than

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This individual prefers no insurance to full contract. 11 Assume that Jay discovers, to his dismay, that his 2014 healthy-state income will be lower than his 2013 healthy-state income, but that his sick-state income I_s is unchanged from 2013 to 2014. Assume that his healthy-state income in 2013 is I_R and his healthy-state income in 2014 is I_H - Delta. Assume 0

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