Narrow Framing and Long‐Term Care Insurance
Year: 2019
Type: article
Abstract: We propose a model of narrow framing in insurance and test it using data from a new module we designed and fielded in the Health and Retirement Study. We show that respondents subject to narrow framing are substantially less likely to buy long‐term care insurance than average. This effect is much larger than the effects of risk aversion or adverse selection, and it offers a new explanation for why people underinsure their later‐life care needs.
Source: Journal of Risk & Insurance
DOI: 10.1111/jori.12290
Authors: Daniel Gottlieb, Olivia S. Mitchell
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,000
OpenAlex ID: W3097403618