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Yindra Burgos Farah

Behavioral Economics Principle

Behavioral economics entails a domain of economics that assimilates economics and psychology in evaluating human behavior, describing the decision-making criteria for human beings and why their behaviors may not reflect their best interests. These principles expose an individual's inner biases and their approaches to decision-making. Through understanding the individual's ways of making decisions, one can make informed decisions about their health. This principle focuses on identifying people's triggers and shifting those focus into positive, healthy mindsets.

The behavioral economics principle nudges a slight tweak in a person's environment to guide decision-making. For instance, healthcare may offer hyperbolic discounting where they offer a medical aid such as a lab test for free within a limited time before it expires. This act creates urgency within people and motivates them to be up-to-date with their health to seize healthcare opportunities when it arises (Carminati, 2020 p.652). Additionally, the behavioral economics principle influences people's perception of time. It helps them remember medical care or services for their family members or themselves that they may have forgotten through emails, calendars, and text messages reminders.

Behavioral economics results in better benefits when applied appropriately to strengthen rules-based on conventional economics. This principle acknowledges that people generally do not know what is best for them, do not act sensibly in the economic sense, and they make decisions based on their limited knowledge or lack thereof (Volpp & Asch, 2017 p.272). With the help of health insurance and health care programs, people are trained to focus their daily behavioral patterns on better health practices for themselves and their families. The principles guide and lead them to focus their behavior on practices that can better serve their health. 

References

Carminati, L. (2020). Behavioral Economics and Human Decision Making: Instances from the Health Care System. Health Policy. https://doi.org/10.1016/j.healthpol.2020.03.012

Volpp, K. G., & Asch, D. A. (2017). Make the healthy choice the easy choice: Using behavioral economics to advance a culture of health. In QJM. https://doi.org/10.1093/qjmed/hcw190

Maria Lazarte

The World Health Organization (WHO) refutes the traditional definition of health as the absence of infirmity or disease. Instead, the WHO defines health as a holistic state of mental, physical, emotional, and social well-being that can be achieved by making the correct decisions. It is prudent to note that most diseases are associated with behavioural changes. It involves financial choices such as regular checkups, eating a balanced diet, and avoiding situations associated with an illness (Guinart, & Kane, 2019). The choice of health behaviour is paramount to improving health because they include the actions, reactions, or response of a person to prevent disease, improve the quality of life and promote health

One primary principle of behavioural economics is loss aversion, and all that human beings are motivated towards eradicating a loss in the long run. The principle makes people more concerned with the tendency of failure than the probability to gain. With people seeking immediate gratification, the principle explains why people have been having challenges engaging in positive lifestyles. Junk food tastes sweeter, while physical exercise is costly and requires time. However, the long-term effect of physical activity and a healthy diet is a healthy body, which improves the quality of life (Corr, & Plagnol, 2018). Most healthcare promotion programs encourage people to adopt behavioural changes to achieve better health outcomes. Insurance agents charge more premiums among people with harmful lifestyles, such as smokers, to ensure that they see the destructive lifestyle as a loss more than again.

The behavioural economics principle discussed makes people view a positive lifestyle such as carrying out physical exercise and eating a healthy diet as more beneficial in the long run. A parent who buys junk food for their family because it is cheaper than a balanced diet will learn about the long term effect of obesity and other related illnesses, which would cost him more to treat his family (Hare et al., 2021). The behavioural economic principle enables a person to see the long-term effect of the behaviours and further make the person adopt cheaper practices.

References

Corr, P., & Plagnol, A. (2018). Behavioural economics: The basics. Routledge. https://www.routledge.com/Behavioral-Economics-The-Basics/Corr-Plagnol/p/book/9781138228917

Guinart, D., & Kane, J. M. (2019). Use of behavioural economics to improve medication adherence in severe mental illness. Psychiatric Services, 70(10), 955-957. https://doi.org/10.1176/appi.ps.201900116

Hare, A. J., Patel, M. S., Volpp, K., & Adusumalli, S. (2021). The Role of Behavioral Economics in Improving Cardiovascular Health Behaviors and Outcomes. Current cardiology reports, 23(11), 1-12. https://doi.org/10.1007/s11886-021-01584-2