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Staveley-O'Carroll, James; Gai, Yunwei – Journal of Economic Education, 2023
The authors describe an asymmetric information demonstration that assigns students different probabilities of incurring healthcare expenses. In each round, students choose whether to purchase insurance; then, the instructor randomly determines who gets "sick." After computing insurer profits, students help determine a new insurance price…
Descriptors: Risk, Economics Education, Health Insurance, Teaching Methods