qualified before. Furthermore, if insurance premiums become fully customizable will enable society to spend only what is needed for them. 6. If only risk-averse people will buy health insurance, why do many people who buy health insurance also buy lottery tickets (an activity more consistent with risk taking)? Speculate on the differences and similarities. How the saying goes, you only need insurance that one time. In my opinion, people that plan for their tomorrow buy health insurance and lottery tickets. Even though the probability of using the insurance and winning lottery are low for them, they know it only takes that one time that it could happen, and they will be ready when it does. On the other hand, the risk- taking people do not have the mentality of planning for tomorrow so they tend to evade health coverage premiums and buy high quantity of lottery tickets. They are not trying to protect their wealth in the long run.
5 Running head: INCOME, RISK, AND CONSUMER DEMAND FOR HEALTHCARE References Folland, S., Goodman, A.C., & Stano, M. (2017). The economics of health and health care . (8 th ed.). New York, NY: Routledge. Health Economics Demand for Capital Gain, Gerald J. Pruckner (2010); retrieved from:
- Fall '15