HSCI 306 Lecture Notes - Lecture 6: Risk Aversion, Loss Aversion, Managed Care
29 Sep 2016
School
Department
Course
Professor
Document Summary
Risk aversion: taking the same offer with the lower risk (pick certain outcome over uncertain outcome) Risk indifferent: don"t see any value of a certain outcome vs uncertain outcome. Welfare gain of risk pooling: limitations of standard model. Tossing a coin for vs for ,000: loss aversion. Value not losing things instead of gaining things even when the value is the same. Gatekeeper model: determines whther treatment is needed. Managed care: pay a fee to get the health care, health proessionals are paid based on the benefit and quality of the services. Therefore the health professionals wont do needless appointments: capacity control. Of too many people are going for mri then a cap will be put on mri: incentives. Modelling physician behaviour: leisure is a normal good. As income goes up youll demand more leisure.
