Behavioral Economics and Health Economics
39 Pages Posted: 29 Oct 2004 Last revised: 27 Mar 2022
Date Written: November 2004
Abstract
The health sector is filled with institutions and decision-making circumstances that create friction in markets and cognitive errors by decision makers. This paper examines the potential contributions to health economics of the ideas of behavioral economics. The discussion presented here focuses on the economics of doctor-patient interactions and some aspects of quality of care. It also touches on issues related to insurance and the demand for health care. The paper argues that long standing research impasses may be aided by applying concepts from behavioral economics.
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