One concern with data on hypothetical choices is anchoring bias, the tendency of subjects to insufficiently adjust their response from 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 the first 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 an annual 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 lower prices would follow). Questionnaire B started with a price of $3000and then followed with a price of $2000. Comparing responses across the two questionnaires allows us to test for anchoring bias.