In my last essay, I not only described the historical underpinnings of the model of homo economicus but also described it as a foundational element of modern economic theory. Homo economicus is the smallest unit of analysis in economic theory and is characterized as a solitary agent, calculating in his utility, solely driven by competition,… Continue reading Carrots & Sticks
Tag: behavioral economics
The human brain (like any other organ) has evolved for specific environments and is constrained by its chemistry and historical contingencies. In my last post, I discussed the cognitive blind spots that play a role in the epidemic of over-testing and over-treating in medicine. Human decision making is notoriously ill-equipped to distinguish between low probability… Continue reading Tail Events
How do we get patients engaged in their care?
According to a meta-analysis published in the Annals of Internal Medicine (2012), Americans are failing to comply with medication prescriptions and it's costing them anywhere between $100 billion to $289 billion a year. 20 to 30 percent of prescriptions are never filled and almost 50 percent of medications aren't taken as prescribed. (Annals of Internal Medicine,… Continue reading How do we get patients engaged in their care?