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The use of behavioral insights and experimental methods has recently gained momentum among health policy-makers. There is a tendency, however, to reduce behavioral insights applications in health to “nudges,” and to reduce experiments in health to “randomized controlled trials” (RCTs). We argue that there is much more to behavioral insights and experimental methods in health economics than just nudges and RCTs. First, there is a broad and rich array of complementary experimental methods spanning the lab to the field, and all of them could prove useful in health economics. Second, there are a host of challenges in health economics, policy, and management where the application of behavioral insights and experimental methods is timely and highly promising. We illustrate this point by describing applications of experimental methods and behavioral insights to one specific topic of fundamental relevance for health research and policy: the experimental elicitation and econometric estimation of risk and time preferences. We start by reviewing the main methods of measuring risk and time preferences in health. We then focus on the “behavioral econometrics” approach to jointly elicit and estimate risk and time preferences, and we illustrate its state-of-the-art applications to health.

Behavioral economics poses a challenge for the welfare evaluation of choices, particularly those that involve risk. It demands that we recognize that the descriptive account of behavior toward those choices might not be the ones we were all taught, and still teach, and that subjective risk perceptions might not accord with expert assessments of probabilities. In addition to these challenges, we are faced with the need to jettison naive notions of revealed preferences, according to which every choice by a subject expresses her objective function, as behavioral evidence forces us to confront pervasive inconsistencies and noise in a typical individual’s choice data. A principled account of errant choice must be built into models used for identification and estimation. These challenges demand close attention to the methodological claims often used to justify policy interventions. They also require, we argue, closer attention by economists to relevant contributions from cognitive science. We propose that a quantitative application of the “intentional stance” of Dennett provides a coherent, attractive and general approach to behavioral welfare economics.

Through two experiments, this study assessed source and message effects of Instagram-based pro-veganism messages.

Experiment 1 (N = 294) examined effects of organization (brand vs nonprofit) and message types (egoistic vs altruistic) on consumer responses to Instagram-based pro-veganism content. Experiment 2 (N = 288) examined effects of source type (celebrity vs noncelebrity) and message valence (positive vs negative) on consumer responses to Instagram-based pro-veganism content.

Results demonstrated significant main effects of organization type, with consumers indicating more positive attitudes and higher credibility toward the brand. Significant main effects of message type were also found, with altruistic messages eliciting higher perceived information value than egoistic messages. Subjective norms had moderating effects on attitude toward the organization, while attitude toward veganism had moderating effects on perceived information value. Results also indicated significant main effects of message valence on perceived information value of pro-veganism Instagram posts and significant interaction effects of the two manipulated factors on intention to spread electronic word-of-mouth (eWOM) about pro-veganism.

Implications for use of Instagram-based health marketing communication about veganism were discussed. Specifically, organizations looking to use social media to influence attitudes and behavioral intentions toward health issues should seek to reach their target audiences through selecting endorsers and messages that will optimally present the health issue in a relatable and engaging way.

Word‐of‐mouth is a powerful communication tool which is often beyond the control of the marketer. This study used a 3 x 2 x 2 factorial experiment in a laboratory simulation to examine the main and interaction effects of three independent variables — message, source and user‐type — on credibility and behavior intention. The experiment involved 1,440 respondents from two different demographic sample groupings — secondary school students and undergraduates. ANOVA results for the experiments showed that, generally, source and user‐type were found to be significant factors affecting the credibility of word‐of‐mouth. In terms of source, father was perceived to be more credible than close friend as a word‐of‐mouth source. Likewise, past users were found to be more credible than non‐past users. Message was, however, found to affect significantly the behavioral intention variable. Negative message was found to generate the strongest negative behavioral intention than positive message and two‐sided messages. Two‐sided message was also found to have a stronger effect than positive message in behavioral intention. In addition, t‐tests results also revealed significant differences in perceptions between the two samples.

Purpose – A placebo effect is a (positive) change in health outcomes that is due to a (positive) change in beliefs about the value of a treatment. Placebo effects might be “behavioral,” in the sense that revised beliefs lead to behavioral changes or new actions that in turn yield changes in health outcomes. Placebo effects might also include a “physiological” component, which refers broadly to non-behavioral, brain-modulated mechanisms by which new beliefs cause changes in health outcomes. Nearly all formal economic models of human behavior are consistent with behavioral placebo effects, but strongly inconsistent with their physiological counterparts. The reason is that the latter effects can imply that expectations enter, rather than multiply, state-contingent preferences. It is therefore unfortunate that little evidence exists on physiological placebo effects. We report data from novel clinical experiments with caffeine that seek to provide such evidence.

Methods – Subjects visit the clinic on multiple occasions. On each visit they ingest either a placebo or caffeine pill. Subjects only know the probability with which the pill includes caffeine. We obtain physiological measurements prior to ingestion and at 30, 60, and 90min after ingestion. Importantly, we constrain subjects to remain seated and read pre-selected magazines during the interval between treatment and outcome measurement.

Findings – Our design provides particularly clean inference because it (i) eliminates the possibility of behavioral confounds; (ii) provides for measurements at the individual level; (iii) manipulates beliefs without deception; and (iv) uses salient rewards. We find evidence for the existence of physiological placebo effects mediated by expectations.

Implications – Our results are consistent with the possibility that the prefrontal cortex provides external, top-down control that modulates physiological outcomes, and make a case for the importance of research geared toward developing appropriate and tractable frameworks that accommodate non-linear relationships between expectations and preferences.

This research investigates the effect of imposing a tax on sugar-sweetened beverages (SSBs) on the likelihood of purchasing SSBs. We design and test an experimental framework that examines this and the effects of providing an explanation about the presence of an SSB tax and information about the negative health effects of consuming SSBs. Consistent with Elbel, Taksler, Mijanovich, Abrams, and Dixon (2013) and Taylor, Kaplan, Villas-Boas, and Jung (2019), we find that imposing a tax, in addition to increasing the conspicuousness of the tax by explaining the presence of a tax (and in some cases, the negative health effects) reduces the likelihood of purchasing an SSB anywhere from 8.39% to 18.15%. We contribute to the public health and tax policy literature by testing consumer choice in a controlled experimental setting and considering the effect of individual differences on the choice to purchase SSBs. Imposing a tax on SSBs may be an effective tool for decreasing SSB consumption that is made more effective when the tax is conspicuous.

This article aims to lend insight into the consumption situation wherein consumers are unmotivated to try new products or behaviors that they perceive as too difficult to adopt as a result of low self-efficacy.

Two experiments were introduced to test hypotheses. In Studies 1 and 2, we demonstrated that enhancing specific self-efficacy (SSE) by repositioning the self, through marketing messages, increased participants’ behavioral intentions toward difficult to adopt (DTA) products.

In this research, an important issue is elucidated in consumer behavior: a phenomenon wherein consumers lack the motivation, as a result of low self-efficacy (i.e. assessing the disparity between their current situation and some desired goals as too wide to bridge over), to try a product that would benefit them. Thus, the marketer’s role in this case is to convince the consumers that they are able to achieve these goals.

This study focuses on health and fitness products and on the effectiveness of messages targeted at raising SSE among undergraduate students through verbal persuasion. For better generalizability, it is recommended that future research focus on other product categories (e.g. do-it-yourself products, technological products) aimed at other segments (e.g. elderly consumers) and use other means of boosting consumers’ self-efficacy.

The practical importance of the findings is especially relevant in DTA situations in which marketers aim to motivate consumers to engage in effortful consumption tasks.

The uniqueness of our approach is, in addition to introducing the theoretical concepts, to demonstrate that marketers can boost individuals’ self-efficacy by means of marketing messages that emphasize their ability to face challenges and, consequently, increase their preferences, behavioral intentions and financial commitments toward a DTA product.

This chapter reviews the existing empirical evidence on how social insurance affects health. Social insurance encompasses programs primarily designed to insure against health risks, such as health insurance, sick leave insurance, accident insurance, long-term care insurance, and disability insurance as well as other programs, such as unemployment insurance, pension insurance, and country-specific social insurance programs. These insurance systems exist in almost all developed countries around the world. This chapter discusses the state-of-the art evidence on each of these social insurance systems, briefly reviews the empirical methods for identifying causal effects, and examines possible limitations to these methods. The findings reveal robust and rich evidence on first-stage behavioral responses (“moral hazard”) to changes in insurance coverage. Surprisingly, evidence on how changes in coverage impact beneficiaries’ health is scant and inconclusive. This lack of identified causal health effects is directly related to limitations on how human health is typically measured, limitations on the empirical approaches, and a paucity of administrative panel data spanning long-time horizons. Future research must be conducted to fill these gaps. Of particular importance is evidence on how these social insurance systems interact and affect human health over the life cycle.