Between 1974 and 1982, the famous RAND health insurance study randomly assigned almost 8,000 people to various health insurance plans. To examine how insurance affects the demand for medical care, some of the insurance plans had little out-of-pocket expenses, while others had significant copays and deductibles. This insurance study is an example of a:
A) lab experiment.
B) field experiment.
C) natural experiment.
D) free-rider experiment.

Question

Quizplus · Accepted Answer

The RAND health insurance study is an example of a field experiment because it involved real-world intervention (assigning different insurance plans to participants) and observed the effects in a natural setting outside of a laboratory environment.

Between 1974 and 1982, the Famous RAND Health Insurance Study