ASSIGNMENT ON CASE STUDY

BEHAVIORAL
ECONOMICS
PGDM 2020-97
SUBMITTED BY,
Samir Ghavariya
Under the Guidance
of, Dr. Hardik
Brahmbhatt
Assistant Professor

Faculty of Finance and

Economics

19th January -2021

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Q1. Explain what is Nudge and how it is important in this case study.
A1.. Nudging means pushing a person politely to do the thing expected for him to do. Nudge
theory in economics suggests that the consumer behaviour can be influenced by positive attitude
and positive reinforcements. Nudge theory suggests that nudges, if used properly, can reduce
market failure, save the government money, encourage desirable actions and help increase the
efficient use of resources. Nudge helps in making public services more cost effective, improves
outcomes by introducing a more realistic human behaviour model and enabling people to make
better choices for themselves. In the case, there was a need to improve the clinical’s decision
making as it was observed that US patients got low-value care only for as much as 20% of the
time. The researchers used behavioural economics to come to a solution. In this situation, they
made use of the Nudge theory. Peers were appointed to check on their peers ethical and efficient
practice. The justification was asked for the prescribed antibiotics to avoid the mess caused by
financial incentives. This led to a substantial reduction in inappropriate prescription of antibiotics
and thus, led to less drug overdose cases and more patient care

Q2) What are the benefits of Financial Incentives? And how are they Connected with the
Clinical behaviour?
A2. The benefits of financial incentives are as follows –
1.The incentives are designed to motivate and encourage people to perform well and Improve
their Outcomes.
2.The goal is to encourage beneficiaries to strive for better performance.( For instance: Utilizing
Pay for Performance System)
As per the above Case study, the connection of financial incentives with clinical behavior can be
Understood as follows
Financial Incentive is a type of approach which was implemented in order to bring effectiveness
In the processes of Care. So below are the listed benefits of Financial Incentives.
1.In Financial Incentive, ‘Pay for Performance’ is a kind of technique in which Clinicians Are
paid according to the quality of performance so it will definitely lead towards Betterment and
improvement in their work.
2.Incentive approach also influence or change the Clinicians behavior and motivate them to
Work with full potential.
3. It also induces Workers or Clinicians for higher efficiency and more output.

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Q3) which are proven and researched ways to improve the Clinical decision making by
Behavioural Economics?
A3 the following points are the proven and researched ways to improve Clinical decision making
by Behavioural Economics are-
1.‘NUDGING’ Approach is a proven and researched way of Behavioural Economics which
Health care organizations have introduced in order to improve physicians decisions. For
Example – Nudges have recently been used to decrease inappropriate antibiotics Prescriptions,
reduce opioid prescriptions in the emergency room setting and influenza Vaccinate rates.

2. ‘MINDSPACE’ Approach is also a behaviour change toolkit and one of the researched way of
behavioural Economics to target behaviour change. It builds on decades of empirical findings
from behavioural Economics about factors that are most influential in bringing about positive
behavioural changes. Therefore, this approach is also helpful and can be used to improve Clinical
decisions.

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 Q4) Explain in detail the connection and pathway of Behavioral Economics, clinical
decision making, culture in context of the above case study?

A4. . It can be said that there is a deep routed connection between behavioral economics,
clinical decision making and the culture of the workplace. As per the case study, it is seen that
there was a lack of quality and quantity service provide by the healthcare service providers.
They did not give enough health cares. This lead to low service and many other
negogations.When behavioral economics was taken into consideration. Nudges and financial
incentives were first taken into consideration. But it was found that both ha its pros and cos.
This approach had no such negative effects and thus it was understood that the culture should
be the main clinical design making factors as good culture costs nothing and has all the
expected positive outcomes. Thus, it can be said that there is a deep routed connection between
behavioral economics, clinical decision making and the culture of the workplace.
Q5. Do you think, Changing or improving clinical behaviour or organization behaviour
will somewhere leads to more business or generation economics activity? If Yes, Explain in
Detail How?
A5. Yes changing or improving clinical behaviour or organization behaviour will somewhere
leads to more business or generating economics activity. Improving clinical behaviour leads to
more care of the service providers towards the patients or customers. This leads to more trust
among the customers and the service providers. More feedback leads to working on the strengths
and weakness thus lead to positive outcomes, which leads to more business and generating more
business activities. Thus ,it can be said that or improving clinical behaviour or organizational
behaviour will somewhere leads to more business or generating economic activity.