Behavioral Economics in Health: Nudging Better Choices

Kato Bukenya T.

Faculty of Business and Management Kampala International University Uganda

ABSTRACT

Behavioral economics examines the psychological and cognitive influences on decision-making, particularly how individuals often deviate from rational choice theory. These insights are instrumental in designing interventions that encourage healthier behaviors through strategic “nudges” and optimized choice architecture in the healthcare sector. This paper examines the core principles of behavioral economics, including bounded rationality, heuristics, and cognitive biases, and their application in public health. It highlights real-world cases of nudges such as modifying food placement in cafeterias, default enrollment in health programs, and social norm-based interventions that have effectively improved health outcomes. While nudging holds promise as a non-coercive strategy for behavior change, ethical considerations regarding autonomy and paternalism must be addressed. Future research should explore how these interventions can be scaled and personalized to cater to diverse populations. By leveraging behavioral insights, policymakers and healthcare providers can implement innovative strategies to promote healthier choices and bridge health disparities.

Keywords: Behavioral economics, nudging, choice architecture, health decision-making, cognitive biases, bounded rationality.

CITE AS: Kato Bukenya T. (2025). Behavioral Economics in Health: Nudging Better Choices. Research Output Journal of Arts and Management 4(1):25-30. https://doi.org/10.59298/ROJAM/2025/412530