Papers of this type typically face several common challenges in
estimating the price elasticity of demand for this population. First,
noisy price imputation will lead to measurement error, generally
biasing elasticity estimates toward zero. This concern is especially
acute with individual-level data, as those who chose not to enroll in
a health plan are unlikely to perfectly remember the premium price
they were offered. Second, elasticity estimates implicitly assume
a homogenous insurance product, when in fact individuals who
pay higher premiums may be obtaining more generous health care
benefits, again biasing elasticities toward zero.