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Custom Made Versus Ready to Wear Treatments; Behavioral Propensities in Physician's Choices

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  • Richard G. Frank
  • Richard J. Zeckhauser

Abstract

To customize treatments to individual patients entails costs of coordination and cognition. Thus, providers sometimes choose treatments based on norms for broad classes of patients. We develop behavioral hypotheses explaining when and why doctors customize to the particular patient, and when instead they employ "ready-to-wear" treatments. Our empirical studies examining length of office visits and physician prescribing behavior find evidence of norm-following behavior. Some such behavior, from our studies and from the literature, proves sensible; but other behavior seems far from optimal.

Suggested Citation

  • Richard G. Frank & Richard J. Zeckhauser, 2007. "Custom Made Versus Ready to Wear Treatments; Behavioral Propensities in Physician's Choices," NBER Working Papers 13445, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:13445
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    References listed on IDEAS

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    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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