Behavioral economics is the science of decision making, explaining why and how people make decisions. Behavioral economics has become a hot topic as of late and even won economist Richard Thaler a Nobel Prize in economics in 2017. But you don’t need to have a PhD to put the key concepts to work for you.
In our newest cheat sheet, we look at what you can learn from the principles of behavioral economics, and how they can help you structure your benefits program for optimal results.
Read an excerpt below, and check out the rest of the infographic here.
“So, what does behavioral economics tell us about what drives people’s benefit decisions?
Too much choice is a bad thing. Most people can hold about 7 pieces of information in their mind at once, but they are almost always presented with far more information when choosing a health plan — an overwhelming amount.
With Medicare Part D, older adults choose from 45 prescription drug plans when they’d prefer to be choosing from just 4.”
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