Overview of Behavioral Economics - World Health Summit

Why Do People Make “Bad” Decisions?• Uninformed Decision Making vs. Irrational Decision Making• Economic rationality assumes a framework in which a personcarefully weighs the costs vs. the benefits of any given decisionMore specifically, expected costs vs. expected benefitsAnd more specifically, expected internal costs vs. benefitsAnd even more specifically, discounted expected internal costsvs. benefits• Uninformed Decision Making?People would have expectations that aren’t correct but wouldstill use a measured decision ruleSpecified as “maximizing one’s utility”3