Behavioral economics (also, behavioral economics) studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals and institutions and how those decisions vary from those implied by classical economic theory. influence healthcare decisions, such as whether to purchase health insurance, what plan to choose, and whether and when to consume health care, unfortunately exhibit all of these attributes.

“The goal of behavioral economics is to identify the various triggers that shift behavior and then use those triggers to create an environment that makes it easier for individuals to make healthy decisions,” says Rick Leander, CEO of LFB Holdings

Decision-making over time presents a second challenge. Health care choices often require incurring costs today to produce future benefits. This is true for routine preventative care as well as for more costly and invasive procedures such as the removal of certain organs or tissue to reduce cancer risk among high-risk patients. Behavioral economics has shown that given their own values, people tend to invest too little in activities like these because they put too much weight on costs today and too little weight on future benefits.

It’s easy to see how patients who are asked to make complex decisions in situations when they may feel overwhelmed, confused or afraid, may have trouble making reasoned decisions about their care. They tend to be persuaded by what their friends or neighbors say instead of reviewing the available evidence and making choices that are best for them. And since patients can’t be expected to fully understand medical information, they are influenced by the way in which questions are framed by their physicians.

There are also ethical questions to be considered when attempting to influence healthcare decisions, such as: to what extent should people be pushed and prodded into doing things that are good for them? In a free society, should people be allowed to be obese, smoke, skip their medications, or pursue medical care that may be of little value to them?