Title | Narrow framing and long‐term care insurance |
Publication Type | Journal Article |
Year of Publication | 2020 |
Authors | Gottlieb, D, Mitchell, OS |
Journal | Journal of Risk and Insurance |
Volume | 84 |
Issue | 4 |
Pagination | 861-893 |
Type of Article | Journal |
ISSN Number | 0022-4367 |
Keywords | Finances, Long-term care insurance |
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. |
DOI | 10.1111/jori.12290 |
Short Title | Journal Risk and Insurance |
Citation Key | 10166 |