Question

Please explain how can behavioral economics produce better health care? please be explicit

Answer 1

Ans) Behavioral economics for better health care:

- Behavioral economists, who rely on psychology rather than conventional economic principles to explain human behavior, have a few theories.

- Chief among them is the belief that patients and physicians are "predictably irrational" in their decision-making because they succumb to consistent and recognizable human foibles.

- A leader of this movement is Dr. Kevin Volpp, a physician at the University of Pennsylvania and founding director of the Center for Health Incentives and Behavioral Economics. He designs randomized trials around some of health care’s most important challenges:

• Nudging doctors to provide evidence-based care;
• ensuring patients take their medications;
• helping consumers choose better health plans.

“There’s starting to be a broad recognition that decision-making environments in health care could better reflect how doctors and patients actually make decisions".