Module 1, Part 2: Risk Premiums and WTP for Health Insurance
This section of the class is all about calculating risk premiums and willingness-to-pay for health insurance.
Objectives
- Explain and draw graphically how the risk premium varies with the curvature of the utility function, probability of illness, and amount of potential loss
- Calculate risk premium and willingness-to-pay for health insurance
- Discuss viability of high-risk pools
Activities
Slides
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