COGNITIVE BIASES: APPLYING BEHAVIORAL ECONOMICS TO HEALTH CARE

Write down the last two digits of your social security number. Now write down the maximum amount you would pay for a cordless keyboard. Surprisingly, studies have repeatedly shown that individuals who write down relatively high social security numbers are willing to pay up to 2-3 times more on average than individuals who write down relatively low social security numbers.1 The consistent results of this experiment testify to the power of cognitive biases and demonstrate how the decision-making of both patients and physicians can go awry.