Behavioral Economics in Health and Medical Fields: Decisions, Biases, and Nudges

Abstract

This paper reviews the studies on behavioral economics in health and medical fields. We divide the studies into the following two categories. First, some empirical or experimental studies examine how behavioral biases and characteristics in patients’ decision making promote or impede the behaviors that will lead to desirable health outcomes. In details, the studies report that risk-averse individuals are likely to take such behaviors, while those with a high rate of time-discounting or present bias are not. Second, other experimental studies use the behavioral biases and characteristics, and develop and provide nudges to promote patients’ behaviors that will lead to desirable health outcomes. Furthermore, recent researchers conduct behavioral economics studies, by using doctors’ and nurses’ samples. Finally, we suggest that researchers explore nudges with long-term and stable effects.