Healthcare and the Moral Hazard Problem
The demand curve isn’t simple when lives are on the line.
Healthcare and the Moral Hazard ProblemHouseholds produce a large share of the world’s greenhouse gas emissions, whether by consuming energy at home or burning fuel to travel. This makes individual actions crucial in mitigating climate change, but how can policy makers encourage more responsible behavior? Chicago Booth’s Michael Weber and his coresearchers sought to explore one possible avenue through a randomized trial, assigning respondents of a national survey in Germany to one of four treatment groups that received information from peer or expert sources about the impact of emissions on climate change and the ways people can reduce their carbon footprint. All four groups reported a greater willingness to act—in this case, to spend on carbon offsets—relative to a fifth group, a control that received no information on climate change. The researchers find that information framed as coming from peers created the strongest effect. To learn more, read “Peer Pressure Can Help Fight Climate Change.”
Illustration by Peter Arkle
The demand curve isn’t simple when lives are on the line.
Healthcare and the Moral Hazard ProblemA conversation on how businesses should think about the growing demands of stakeholders.
How Should Companies Respond to ‘Woke Capitalism’?A study of data from 17 countries provides a nuanced answer.
Can Positive Thinking Fuel Economic Booms?Your Privacy
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