Motivated Inferences of Price and Quality in Healthcare Decisions

Emily Prinsloo, Kate Barasz, Peter A. Ubel

Research output: Indexed journal article Articlepeer-review

3 Citations (Scopus)

Abstract

Policy makers have increasingly advocated for healthcare price transparency, whereby prices are made salient before services are rendered. While such policies may empower consumers, they also bring price to the forefront of healthcare choices as never before, with yet underexplored consequences on consumers’ decisions. This article explores one: using price as a signal of quality. Five experiments demonstrate how healthcare consumers may come to form price-based inferences of quality and explore how these inferences may vary as a function of individuals’ health insurance coverage. Specifically, relative to high-coverage consumers (for whom insurance covers a relatively greater portion of healthcare expenses), low-coverage consumers (for whom insurance covers relatively less) tend to both choose lower-priced providers and perceive a weaker price-quality relationship, suggestive of motivated reasoning. Our work exposes one way in which price transparency policies may have divergent effects on low-versus high-coverage consumers, with direct implications for policy.

Original languageEnglish
Pages (from-to)186-197
Number of pages12
JournalJournal of the Association for Consumer Research
Volume7
Issue number2
DOIs
Publication statusPublished - Apr 2022
Externally publishedYes

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