The Value of Information in Health Insurance: A Theoretical Approach
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.
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|Date of creation:||1997|
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