Description: Why do people buy health insurance? Conventional theory holds that people purchase insurance because they prefer the certainty of paying a small premium to the risk of getting sick and paying a large medical bill. This book presents a new theory of consumer demand for health insurance. It holds that people purchase insurance to obtain additional "income" when they become ill.
Review Quotes: "This is a compelling and modern treatment of the demand for health insurance written by a leader in the field. The book is concise yet comprehensive, carefully researched, and clear. It is must reading for anyone interested in understanding alternative theories of the demand for health insurance, as well as the policy implications of these alternative theories."--John A. Rizzo, The Ohio State University