Health Care Management Papers
Document Type
Journal Article
Date of this Version
4-2012
Publication Source
JAMA (Journal of the American Medical Association)
Volume
307
Issue
13
Start Page
1375
Last Page
1376
DOI
10.1001/jama.2012.387
Abstract
Financial incentives abound in health care. They are found in the ways physicians are paid and in the ways health insurance coverage, co-payments, and deductibles are structured for patients. The effects of these incentives are often understood through conventional economic principles, with the assumption that individuals are self-interest maximizers who respond directly to changes in incentives. In contrast, behavioral economics imports insights from psychology and recognizes that individuals often do not respond to incentives as rationally as they might. In some cases, individuals lack information, but in others, they just seem to act contrary to their own known interests, for example, when they overeat, fail to take medication, or neglect to wear seat belts.
Copyright/Permission Statement
Copyright © 2012 American Medical Association
Recommended Citation
Loewenstein, G., Volpp, K. G., & Asch, D. A. (2012). Incentives in Health: Different Prescriptions for Physicians and Patients. JAMA (Journal of the American Medical Association), 307 (13), 1375-1376. http://dx.doi.org/10.1001/jama.2012.387
Date Posted: 27 November 2017
This document has been peer reviewed.