The effect of framing on the choice of co-payment policies, reducing moral hazard and post-choice-evaluation

Drevs, Florian; Tscheulin, Dieter K.

doi:10.1007/s11573-012-0646-0

Publication type:	Article in scientific journal
Type of review:	Peer review (publication)
Title:	The effect of framing on the choice of co-payment policies, reducing moral hazard and post-choice-evaluation
Authors:	Drevs, Florian Tscheulin, Dieter K.
et. al:	No
DOI:	10.1007/s11573-012-0646-0
Published in:	Journal of Business Economics
Volume(Issue):	83
Issue:	3
Page(s):	213
Pages to:	233
Issue Date:	2013
Publisher / Ed. Institution:	Springer
ISSN:	0044-2372 1861-8928
Language:	English
Subject (DDC):	330: Economics
Abstract:	This study analyses the impact of two financially equivalent frames of a co-payment policy on the choice between a co-payment policy and one with full cost recovery. It also examines the incentive effect of the co-payment and the post-choice evaluation on the pay-offs in case of unexpected losses, using the example of health insurance. Two experimental studies form the context for an empirical investigation of the theoretical considerations. We examine the framing-related effects of a rebate compared to a premium reduction frame of a co-payment policy. The results confirm that a rebate frame has a positive effect on the intention to choose a co-payment policy. The intention to avoid claims in the premium reduction frame is greater than in the rebate frame. In case of unexpected losses because of high insurance claims, the rebate frame results in less dissatisfaction and causes fewer regret effects. The results support the theoretical considerations that insurance companies should account for these differences and design their co-payment policies according their priorities, either with a rebate or a premium reduction frame.
URI:	https://digitalcollection.zhaw.ch/handle/11475/18080
Fulltext version:	Published version
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Winterthur Institute of Health Economics (WIG)
Appears in collections:	Publikationen School of Management and Law

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Drevs, F., & Tscheulin, D. K. (2013). The effect of framing on the choice of co-payment policies, reducing moral hazard and post-choice-evaluation. Journal of Business Economics, 83(3), 213–233. https://doi.org/10.1007/s11573-012-0646-0

Drevs, F. and Tscheulin, D.K. (2013) ‘The effect of framing on the choice of co-payment policies, reducing moral hazard and post-choice-evaluation’, Journal of Business Economics, 83(3), pp. 213–233. Available at: https://doi.org/10.1007/s11573-012-0646-0.

F. Drevs and D. K. Tscheulin, “The effect of framing on the choice of co-payment policies, reducing moral hazard and post-choice-evaluation,” Journal of Business Economics, vol. 83, no. 3, pp. 213–233, 2013, doi: 10.1007/s11573-012-0646-0.

DREVS, Florian und Dieter K. TSCHEULIN, 2013. The effect of framing on the choice of co-payment policies, reducing moral hazard and post-choice-evaluation. Journal of Business Economics. 2013. Bd. 83, Nr. 3, S. 213–233. DOI 10.1007/s11573-012-0646-0

Drevs, Florian, and Dieter K. Tscheulin. 2013. “The Effect of Framing on the Choice of Co-Payment Policies, Reducing Moral Hazard and Post-Choice-Evaluation.” Journal of Business Economics 83 (3): 213–33. https://doi.org/10.1007/s11573-012-0646-0.

Drevs, Florian, and Dieter K. Tscheulin. “The Effect of Framing on the Choice of Co-Payment Policies, Reducing Moral Hazard and Post-Choice-Evaluation.” Journal of Business Economics, vol. 83, no. 3, 2013, pp. 213–33, https://doi.org/10.1007/s11573-012-0646-0.