Make Better Insurance Decisions (with Amy Finkelstein)
The Stacking Benjamins Show
00:00
How Insurance Compares to Broccoli
Some brilliant people don't understand insurance and that's actually the crux of why my guest here joins me today Amy Finkelstein. Insurance companies care very much about who their customers are because the companies profits depend not just on how much insurance they sell but on who they sell it to if they sold it to accident prone risky customers safe and careful customers by contrast the supermarket does not care who buys its broccoli they care only about how much broccoli they sell. The reason for the mandate is precisely what our book is about that why why sometimes insurance markets won't work if we just let the free market run rampant. We start with this story from American Airlines from the early 1980s where they offered a
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