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Related Concept Videos

Compensation Mechanisms01:28

Compensation Mechanisms

The human body employs intricate mechanisms to counteract changes in blood pH, preventing conditions like acidosis (pH < 7.35) and alkalosis (pH > 7.45). These compensatory responses aim to restore normal arterial blood pH by engaging respiratory or renal systems, depending on the source of the imbalance.
Respiratory Compensation
This mechanism addresses metabolic-induced pH imbalances by adjusting breathing rates. Respiratory compensation begins within minutes of detecting a pH...
Social Exchange Theory01:26

Social Exchange Theory

As formulated by John Thibaut and Harold Kelley, Social Exchange Theory explains human relationships as economic-like exchanges that maximize rewards and minimize costs. This theory suggests that individuals engage in relationships to gain benefits and reduce burdens, similar to economic transactions. It has been widely applied to various types of relationships, including romantic, professional, and social interactions.Rewards and Costs in RelationshipsRelationship rewards include emotional...
Social Exchange Theory02:06

Social Exchange Theory

We have discussed why we form relationships, what attracts us to others, and different types of love. But what determines whether we are satisfied with and stay in a relationship? One theory that provides an explanation is social exchange theory. According to social exchange theory, we act as naïve economists in keeping a tally of the ratio of costs and benefits of forming and maintaining a relationship with others (Rusbult & Van Lange, 2003).
Incentive Theory: Pull Theory of Motivation01:18

Incentive Theory: Pull Theory of Motivation

Incentive theory, or the "pull theory" of motivation, suggests that external rewards primarily drive behavior. Individuals are motivated to engage in activities when they anticipate a desirable outcome. This is why people often work hard for promotions or study intensively to achieve high grades. These incentives can be tangible, physical rewards such as money or promotions, or intangible, non-physical rewards like praise and social recognition.
The theory differentiates between intrinsic and...
Equity Theory01:26

Equity Theory

Equity theory explains how our sense of fairness influences the dynamics of close relationships. Rooted in social psychology, the theory posits that individuals evaluate fairness by comparing the ratio of their contributions to the rewards they receive. Relationship satisfaction is highest when these ratios are perceived as balanced between partners, promoting mutual reciprocity and a sense of justice.Equity vs. Equality in RelationshipsEquity is distinct from equality. Fairness does not...
Persuasion Strategies01:52

Persuasion Strategies

Researchers have tested many persuasion strategies, including the foot-in-the door and the door-in-the-face techniques, in a variety of contexts. Ultimately, the principles are effective in selling products and changing people’s attitude, ideas, and behaviors (Cialdini & Goldstein, 2004).

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Related Experiment Video

Updated: May 29, 2026

Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making
11:51

Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making

Published on: March 2, 2011

[Pay for performance explained by transaction costs theory].

Yuri Gorbaneff1, Ariel Cortes, Sergio Torres

  • 1Departamento de Administración de Salud, Facultad de Ciencias Económicas y Administrativas, Pontificia Universidad Javeriana, Bogotá, Colombia. yurigor@javeriana.edu.co

Gaceta Sanitaria
|September 16, 2011
PubMed
Summary

Transaction costs theory effectively explains healthcare incentives. It differentiates between market (discrete incentives) and hybrid (continuous incentives) governance structures, aiding in understanding health insurance operations.

Related Experiment Videos

Last Updated: May 29, 2026

Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making
11:51

Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making

Published on: March 2, 2011

Area of Science:

  • Health economics
  • Organizational economics

Context:

  • Explores transaction costs theory within the Colombian healthcare sector.
  • Focuses on a specific health insurance company (CPS) in Bogota.

Purpose:

  • To assess the explanatory power of transaction costs theory for healthcare incentives.
  • To differentiate between market and hybrid governance models in healthcare.

Summary:

  • Transaction costs theory aligns with observed incentive structures in healthcare.
  • Hybrid governance at the outpatient level uses continuous incentives, while the market at the hospital level uses discrete incentives.
  • Challenges exist in linking hospital payments to performance due to discrete incentives and lack of administrative control.

Impact:

  • Provides a theoretical framework for understanding healthcare incentive configurations.
  • Offers a criterion to distinguish between market and hybrid governance based on incentive types.
  • Contributes to the literature on healthcare management and economic theory.