Demonstrate how the structure of an offer can attract only the sub-segment of customers with the worst economics. With the US healthcare data as background, 1 or 2 students act as health insurers (defining the insurance price) and the rest of the class acts as potential customers with a range of expected health expenses (accepting/refusing the insurance).
Customers' expected healthcare expenses follow the distribution of US healthcare costs, randomly drawn from a probability function. At the end of the round, customers are shown their actual healthcare expenses and can assess if they made a good decision (i.e., healthcare costs > insurance costs).
