Behavioral Economics and Health Economics: The Relationship among Patience, Saving Behavior and Health In 2012, New York City passed a law prohibiting the sale of sugary drinks larger than 16 ounces. This law was based on the assumption that (in behavioral economics terms) some people failed to control their diet even when they were aware of the health risks related to high sugar intake. By limiting people’s ability to consume, the law was intended to delay part of their desire for sugar intake, which would indirectly adjust their level of patience. This action of delaying instant gratification was defined as patience and had the potential to improve the public’s health. Other policies, however, have also been created with good intentions but have eventually failed to have a positive impact. For example, some cities in the United States (U.S.) have required fast-food restaurants to put nutritional labels on their food products. This knowledge of nutritional facts, though, can only deter people with a certain level of patience from eating the food. As with the case of sugary drinks, people have often overlooked the long-term health risk and have chosen instant gratification over long-term health. — by Amy Thao Ngo
Spring 2014
The Exley
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