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The Value of Information in Health Insurance: A Theoretical Approach

Author

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  • Henriet, D.

Abstract

This paper proposes a model which intends to analyse the alternative between discrimination and mutualisation in insurance. We suppose there exists an observable (but initially hidden)variable, that predicts the level of risk of an individual. This variable can be observed through a testing process. Before testing, each individual has an imperfect private information on his risk.

Suggested Citation

  • Henriet, D., 1997. "The Value of Information in Health Insurance: A Theoretical Approach," G.R.E.Q.A.M. 97a38, Universite Aix-Marseille III.
  • Handle: RePEc:fth:aixmeq:97a38
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    More about this item

    Keywords

    INSURANCE ; INFORMATION ; TESTING ; REGULATION;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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