Seminar: Supplier-induced demand as strategic framing

Time: 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Kris de Jaegher (UU)

Discussant: Machiel van Dijk (CPB)

Language: English

Registration: Please register by sending an email to seminars@cpb.nl.

Abstract subject:
This paper develops a model of persuasive demand inducement, where a physician frames the healthcare decision faced by a patient with prospect-theoretic preferences, such as to make the patient see the decision from the perspective of a particular reference derive how the patient’s degree of risk aversion, how the manner in which this degree of riskand the decision to buy a risky curative treatment rather than no treatment. Furthermore, wepoint. We derive the reference point which maximises the probability that the patient buys treatment under two scenarios, namely the decision to buy a safe preventive treatment rather than no treatment, aversion changes with wealth, and how the level of loss aversion, affect the reference point that is optimal from the perspective of the physician.

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