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Price and Saliency in Health Care: When Can Targeted Nudges Change Behaviors?

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  • Walker, Brigham

    (Tulane University)

Abstract

This paper takes advantage of a natural experiment to examine the relationship between the price and saliency of health services. A large employer e-mailed individually-targeted health education encouraging high-value care to high-risk employees. Weeks before the program launched, a company reorganization affecting about a quarter of employees resulted in that group not receiving the intervention. Using event study, difference-in-differences, and triple differences methods, I find that costlier services are associated with relatively less utilization and that prior use was associated with relatively more utilization following the campaigns. These results may inform employer, governmental, and health insurer choices concerning low-cost interventions seeking to shift health behaviors, and may also be relevant in other settings in which targeted informational nudges are deployed.

Suggested Citation

  • Walker, Brigham, 2020. "Price and Saliency in Health Care: When Can Targeted Nudges Change Behaviors?," IZA Discussion Papers 13851, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13851
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    Cited by:

    1. Alcocer, Christian Diego & Torres, Elman Roman Torres, 2024. "Salience bias: A framework about the importance of prices and budget constraints perceptions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 110(C).

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    More about this item

    Keywords

    information; saliency; price; health care; nudges; prior beliefs;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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