Abstract
Behavioral economics applies the principles of psychology and economics to explain patterns in human decision making. When applied to health care settings, behavioral economics explains how heuristics and cognitive biases may lead patients to make counterproductive choices that undermine their health and wellbeing. These maladaptive decisions lead to noncompliance and suboptimal treatment, which contributes to disease progression and increased utilization of medical resources. An understanding of patterns in human behavior can be used to counter noncompliance and improve the efficacy of health promotion interventions.
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