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We provide sufficient conditions for semi-nonparametric point identificationof a mixture model of decision making under risk, when agents make choices inmultiple lines of insurance coverage (contexts) by purchasing a bundle. As afirst departure from the related literature, the model allows for twopreference types. In the first one, agents behave according to standardexpected utility theory with CARA Bernoulli utility function, with anagent-specific coefficient of absolute risk aversion whose distribution is leftcompletely unspecified. In the other, agents behave according to the dualtheory of choice under risk(Yaari, 1987) combined with a one-parameter familydistortion function, where the parameter is agent-specific and is drawn from adistribution that is left completely unspecified. Within each preference type,the model allows for unobserved heterogeneity in consideration sets, where thelatter form at the bundle level -- a second departure from the relatedliterature. Our point identification result rests on observing sufficientvariation in covariates across contexts, without requiring any independentvariation across alternatives within a single context. We estimate the model ondata on households' deductible choices in two lines of property insurance, anduse the results to assess the welfare implications of a hypothetical marketintervention where the two lines of insurance are combined into a single one.We study the role of limited consideration in mediating the welfare effects ofsuch intervention.

Risk Preference Types, Limited Consideration, and Welfare