Working Paper: NBER ID: w10881
Authors: Richard G. Frank
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.
Keywords: No keywords provided
JEL Codes: I1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| cognitive errors (D91) | inefficient market outcomes (D61) |
| cognitive errors (D91) | overuse of medical care (I11) |
| cognitive errors (D91) | underuse of medical care (I14) |
| structure of information (D83) | perceptions and decision-making regarding health care providers (I11) |
| trust and familiarity with physicians (I11) | biased decision-making (D91) |