Working Paper: NBER ID: w13445
Authors: Richard G. Frank; Richard J. Zeckhauser
Abstract: To customize treatments to individual patients entails costs of coordination and cognition. Thus, providers sometimes choose treatments based on norms for broad classes of patients. We develop behavioral hypotheses explaining when and why doctors customize to the particular patient, and when instead they employ "ready-to-wear" treatments. Our empirical studies examining length of office visits and physician prescribing behavior find evidence of norm-following behavior. Some such behavior, from our studies and from the literature, proves sensible; but other behavior seems far from optimal.
Keywords: physician decision-making; treatment customization; norms in healthcare
JEL Codes: D80; I11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| complexity of patient conditions (I11) | use of ready-to-wear treatments (L67) |
| cognitive burden of customization (D91) | use of ready-to-wear treatments (L67) |
| cognitive and communication costs (D23) | suboptimal decision-making (D91) |
| nature of the condition (I12) | likelihood of customizing treatments (C52) |