One concern with data on hypothetical choices is anchoringbias, the tendency of subjects to insufficiently adjust their responsefrom an arbitrary starting point (Tversky and Kahneman, 1974).For example, anchoring bias would arise if subjects in our sur-vey claimed they would purchase health insurance at or near thefirst price suggested because they interpret it as signaling the social desirability of health insurance. To assess the importanceof this problem, we randomly assigned the uninsured subjectsto one of two questionnaires. Questionnaire A started with anannual premium price of $4000 and then lowered the price firstto $3000 for those who said no, and then to $2000 if respon-dents said no to $3000 (though subjects were not told that lowerprices would follow). Questionnaire B started with a price of $3000and then followed with a price of $2000. Comparing responsesacross the two questionnaires allows us to test for anchoringbias.