Problem Set 2

• persitent in individuals when they put a higher weight on avoiding losses than on making gains

• goes hand-in-hand with willingness to take risks in order to prevent a loss

In Health care:

• can have serious effects on the usage of drugs with exlicitly named side effects

• occurs when individuals use different discount rates when deciding about short-term and long-term behaviour

• person might be convinced that there is a benefit to their annual healht check, but keep postponing going to it

• adress this issue by sending annual reminders

• occurs when persons are faced with many choices

• effort of weighing each option results in fatigue

  • in turn increases the likelihood of errors

• health crae professionals may strategically choose to withhold information on treatments, which they judge to be sub-optimal for a patient

• occurs when persons prefer to continue making the same choice, even in circumstances where it is not longer optimal