{"id":22208,"date":"2016-07-28T07:37:40","date_gmt":"2016-07-28T07:37:40","guid":{"rendered":"http:\/\/essayparlour.com\/paperhelp\/uncategorized\/assume-that-only-one-health-condition-ever-afflicts-people-f\/"},"modified":"2016-07-28T07:37:40","modified_gmt":"2016-07-28T07:37:40","slug":"assume-that-only-one-health-condition-ever-afflicts-people-f","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/paperhelp\/economics\/assume-that-only-one-health-condition-ever-afflicts-people-f\/","title":{"rendered":"Assume that only one health condition ever afflicts people f"},"content":{"rendered":"<p>Assume that only one health condition ever afflicts people for which one treatment is available, cos&#8230; Show more Assume that only one health condition ever afflicts people for which one treatment is available, costing $100,000. The condition is very bad, so all consumers would be willing to pay for the treatment even if they did not have insurance. Consumers differ in their risk of being afflicted by the condition. Specifically, \u201chealthy types\u201d have a 1% chance of being afflicted, while \u201csickies\u201d have an 11% probability, with an equal number of each type in the population. For each of the following scenarios, calculate the premium (or premiums) for full insurance you would expect in a competitive market, and explain which consumers would be expected to purchase full insurance. Assume all consumers are risk-averse and only full insurance policies are available. Assume also that everyone (consumers and insurers) know the information above. \uf0b7 Scenario 1: Neither consumers nor insurers know anybody\u2019s risk type. \uf0b7 Scenario 2: Consumers all know their own risk type, but insurers do not know the risk type of individual consumers. \uf0b7 Scenario 3: All consumers and insurers know everyone\u2019s risk type. \uf0b7 Scenario 4: Same as Scenario 3, except \u201ccommunity rating\u201d laws prevent insurers from charging different premiums to different consumers, and \u201cguaranteed issues\u201d laws prevent insurers from denying coverage to anyone. (I.e. full insurance must be offered to everyone at the same premium, regardless of their risk type.) \uf0b7 Scenario 5: Same as Scenario 4, but consumers are legally required to purchase full insurance. Which scenarios lead to efficient outcomes in the insurance market? Why might someone prefer one efficient outcome over another? \u2022 Show less<\/p>\n<p><a href='http:\/\/essayparlour.com\/order'><img id='order_now' class='aligncenter' src='http:\/\/essayparlour.com\/wp-content\/uploads\/2016\/07\/8952039_orig.png' alt='Order Now' name='order_now'><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Assume that only one health condition ever afflicts people for which one treatment is available, cos&#8230; Show more Assume that only one health condition ever afflicts people for which one treatment is available, costing $100,000. The condition is very bad, so all consumers would be <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-22208","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts\/22208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/comments?post=22208"}],"version-history":[{"count":0,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts\/22208\/revisions"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/media?parent=22208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/categories?post=22208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/tags?post=22208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}