Incentives for behavior change

Economists often use price signals to incentivize desirable behaviors.

based on the assumptions that individuals to have stable preferences and make rational decisions that maximize their self-interest in the long run. In practice, most of us will not seek out all available information prior to decision-making and are likely to maximize our self-interest in the present.

We are also susceptible to economic manipulation. Just the other day while ordering sushi on DoorDash, I added an extra roll for $19.99 in order to reach the $120 minimum spend required to save $18. The roll was delicious by the way, although I ended up

Role for behavior economics

Such behaviour is especially pronounced when it comes to the management of one’s health. Many of us engage in activities that do not maximise our long-term health, ranging from lack of exercising and preventative care, to not following prescribed medication regimens, to engaging in harmful behaviours such as drug use.

Unfortunately such levers are limited in usefulness, as successful implementations require