The Theory of Demand for Health Insurance

The Theory of Demand for Health Insurance

by John A. Nyman

201 pages· 2003· ISBN 9780804744881
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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.

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