Our intuition tells us that a low-deductible insurance plan means lower costs, and a high-deductible plan means higher costs. But that isn’t the reality for most employer-sponsored plans, according to research from Justin Sydnor, the Leslie P. Schultz Professor in Risk Management and Insurance and an associate professor in the Department of Risk and Insurance at the Wisconsin School of Business.
Sydnor’s area of expertise is in behavioral economics, with an interest in risk aversion and insurance choices. His research study—“Choose to Lose: Health Plan Choices from a Menu with Dominated Options,” published by The Quarterly Journal of Economics and featured in The New York Times—explores how many people end up choosing a health plan that doesn’t provide the best economic value.
Sydnor spoke about his research at WSB’s Celebration of Faculty Excellence, an event held for the Business Badger community during Homecoming weekend in October 2018. The event highlighted the accomplishments of WSB’s distinguished faculty and the generosity of the donors who support their work.
[video-caption]Watch as Associate Professor Justin Sydnor describes his research on decision-making. [/video-caption]