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Present bias and health

Author

Listed:
  • Yang Wang

    (University of Wisconsin-Madison)

  • Frank A. Sloan

    (Duke University)

Abstract

This study uses a dynamic discrete choice model to examine the degree of present bias and naivete about present bias in individuals’ health care decisions. Clinical guidelines exist for several common chronic diseases. Although the empirical evidence for some guidelines is strong, many individuals with these diseases do not follow the guidelines. Using persons with diabetes as a case study, we find evidence of substantial present bias and naivete. Counterfactual simulations indicate the importance of present bias and naivete in explaining low adherence rates to health care guidelines.

Suggested Citation

  • Yang Wang & Frank A. Sloan, 2018. "Present bias and health," Journal of Risk and Uncertainty, Springer, vol. 57(2), pages 177-198, October.
    • Handle: RePEc:kap:jrisku:v:57:y:2018:i:2:d:10.1007_s11166-018-9289-z
    DOI: 10.1007/s11166-018-9289-z
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    6. Alexander Harin, 2022. "Forbidden Zones for the Expectations of Data: New Mathematical Methods and Models for Behavioral Economics," Academic Journal of Applied Mathematical Sciences, Academic Research Publishing Group, vol. 8(1), pages 12-26, 12-2021.
    7. Horn, Dániel & Kiss, Hubert János & Lénárd, Tünde, 2022. "Gender differences in preferences of adolescents: Evidence from a large-scale classroom experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 478-522.
    8. A. G. Winegar & C. R. Sunstein, 2019. "How Much Is Data Privacy Worth? A Preliminary Investigation," Journal of Consumer Policy, Springer, vol. 42(3), pages 425-440, September.
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    10. Kristoffer Panduro Madsen & Trine Kjær, 2024. "Do time preferences predict diabetes outcomes? A combined survey and register‐based study," Health Economics, John Wiley & Sons, Ltd., vol. 33(9), pages 1949-1961, September.
    11. Xi Cen & David W. Johnston & Claryn S. J. Kung & Michael A. Shields & Eric C. Sun, 2021. "The link between health and economic preferences: Evidence from 22 OECD countries," Health Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 915-920, April.
    12. Cass R. Sunstein, 2024. "Choice engines and paternalistic AI," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-4, December.
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