Channeling Consumers to Preferred Providers and the Impact of Status Quo Bias: Does Type of Provider Matter?

To effectively bargain about the price and quality of health services, health insurers need to successfully channel their enrollees. Little is known about consumer sensitivity to different channeling incentives. In particular, the impact of status quo bias, which is expected to differ between different provider types, can play a large role in insurers' channeling ability.To examine consumer sensitivity to channeling strategies and to analyze the...