Posts Tagged ‘behavioraleconomics’

Turning Around the Economics of Going to the Doc

Tuesday, August 11th, 2009

One of the more interesting parts of the conversation we had with David Lee was around thinking about changing the economics of going to the doctor. As David explained, a regular doctor visit has a bad risk/reward situation: There is a low liklihood anything is wrong but good chance that if something is wrong that it’s serious. On top of this, people have a tendency to overestimate small risks and devalue the future, all leading to a situation where it’s hard to get people into a regular routine of visits.

So how can this be fixed? Well, it’s counterintuitive, but first off you’d need to accurately communicate to people the low risk of the situation by letting them know just how unlikely it is that anything is wrong with them. Then, in the case that something actually was, you’d have to be prepared with a good explanation of how to approach the issue and the liklihood of success (again, people will tend to think that the risk is higher than it really is).

The Effect of Knowing Your Irrationality

Saturday, May 30th, 2009

The other day we had an hour call with David Lee, one of GE’s health economists (who we mentioned the other day). Anyway, I have about six pages of notes I need to parse and start posting, but this morning I was thinking about something very specific he said: People tend to overestimate small risks. A perfect example is cancer, while any individual’s chance of having it is relatively small we don’t tend to think about it that way. This overestimation can keep us from doing things like getting cancer screenings because we’re afraid of what we might learn.

So … In bed this morning I was wondering whether anyone had studied the effect of knowing this human trait on decision making. Like what happens if you remind people right before you ask them whether they’d like to be screened that all humans tend to overestimate the chances of something that is actually quite rare? Will have to ask David this next time we speak (and if it hasn’t been done maybe we can get someone to do the study). In some ways this feels like exactly the kind of intersection between marketing, health and economics that we can really be helpful in (as marketers).

Just a thought.

What Does It Take to Get People to Lose Weight?

Tuesday, May 26th, 2009

Interesting short piece over at the economist blog about what works and doesn’t (mostly the latter) in policies that promote weight loss.

The conclusion is something for us to think about:

It takes more than a small financial incentive to change your lifestyle. Better education and awareness about nutrition and exercise is necessary. Unfortunately, that is harder and more expensive than taxing soda, subsidising weight loss, or encouraging people to plant gardens.

How can companies (like GE) get involved in better education and awareness around nutrition? (The title of the piece, The Biggest Loser, offers one hint.) Most of what’s out there is scare tactics (being overweight is dangerous to your heart!), which never seems to work particularly well. Maybe part of the answer lies in how we frame the situation, studies have shown that making people feel like everyone else around them is doing something (like eating too much) will only make them think they should be doing it too, not that they shouldn’t. The fact is that 32% of the US population is obese and while that may seem like a lot, it means that you can look to 2 out of 3 people around for better eating habits. Maybe that’s a slightly better way to frame the issue?

Letting People Know How Much They Save

Tuesday, May 5th, 2009

Not totally sure what the implications are, but this sticker caught my eye today.

I saw it in a bathroom and it says “This sticker will save up to 100lbs. of paper every year.” It also includes a link to the project’s website, TheseComeFromTrees.com. Just thought it was an interesting, albeit analog, example of communicating consumption to consumers. Maybe something to think about with smart grid/GE energy.