As a science, economics does not always succeed at predicting how humans behave. The discipline assumes a level of rationality, and an ability to process complex information, that far exceeds human capacity. But as a standard for how people ought to behave, economics provides an excellent set of lessons. Consider the economic principle of consistency in financial…
Want to buy health insurance for your family? Last year, that would have cost you almost $18,000. In 1999, the cost would have been closer to $6,000. Here’s a table showing the steady rise in prices: Surprised at the $18,000 number? That’s because much of that cost is being picked up by your employer. You…
Last year, I joined Zeke Emanuel and some other great people in publishing an article on how to use the insights of behavioral economics to nudge physicians towards providing high-value care. Here is a link to that article. To give you a teaser, here are some of the principles we drew upon: And here are…
They both had shoulder pain, persistent despite weeks of physical therapy. Both received MRI examinations at reputable radiology facilities, looking for things like rotator cuff tears, labral disruptions and other anatomical abnormalities. What was different was the price they paid for the MRI, with one patient paying $1000 more than the other. Welcome to the…
Came across this cool graphic, showing the rise and fall of U.S. cigarette consumption. The picture also shows when various policy levers were pulled, and how those levers track to consumption. WARNING: No proof of cause and effect. But still quite interesting.
Taste versus health: That’s a trade-off we are often faced with when deciding what to eat. Some foods are bad for our health but happen to taste quite good. All of us have limited willpower, and when we are exhausted those unhealthy foods become harder to resist. But did you know that when willpower is depleted,…
The holidays are upon us. It’s a time to celebrate with loved ones, maybe even enjoy a well-earned vacation. But it is also a time that many of us gain weight, with children developing eating habits that could set them on a trajectory towards being overweight or obese. It is really crucial to help our…
Many people consider the randomized control trial the gold standard for assessing medical interventions. The US government has been a major funder of such trials, as illustrated in this picture which shows that the government funds just about as many RCTs as private industry: Despite so much US funding for RCTs, the location of such…
Ever wonder why your spouse eats too much even when you warn him or her not to eat too much? It could be because your admonitions put your spouse into a state of reactance, causing them to go against your advice just to prove their independence. Reactance is a state of mind that arises when…
A while back, former FDA Commissioner David Kessler published an article in the New England Journal depicting what cereal boxes would look like if they provided people with useful health information. Here is a sample: What do you think?