DNP 866 Economic Theory in Nursing
DNP 866 Economic Theory in Nursing
Does the public have access to enough knowledge to make wise decisions? is the recognized presumption in this assignment. Consumer policy decisions and protection depend heavily on consumer information. Customers that are well-informed are better prepared to make intelligent selections by gathering information about a product before making a purchase. Consumers can use the information to gather facts and draw conclusions that are supported by evidence. Therefore, the purpose of this assumption is to ascertain whether or not the customers have access to information about the product they are considering buying and how that information influences their choices. In the end, consumers typically base their decisions on the sales and marketing data that providers supply (Rice, 1998). The concept asserts that neither organizations nor customers have the market power to affect the prices of products and services, in contrast to the classic competitive paradigm. This runs counter to the notion that consumers are influenced by information from providers. The ability of customers to make informed decisions has a number of consequences for nursing practice. Nursing services are offered to informed patients. Therefore, it is crucial for nurses to involve their patients in the delivery of care. In order for patients to make educated decisions, they should be informed about their health issues, available treatment options, and their risks and benefits (Hicks, 2020). The other implication is that there is a greater obligation to provide treatment that upholds patients’ rights. To reduce the danger of legal issues resulting from the infringement of patients’ rights, nurses must use the best evidence when making choices (Revill et al., 2019). Because of this, there is a greater need than ever for accountability and openness in the healthcare industry.
How Assumptions Operate Outside of the Medical Field
The growing variety of items suggests that consumers require greater knowledge about them. Consumers, however, frequently only get fragmented information about the products. Additionally, the information is affected by changes in the situations where decisions are
made, such as time constraints and limitless opportunities. These modifications may have an impact on how consumers learn about things and make decisions. Information availability before and after the invention of internet technology differs significantly. During the time before the internet, there wasn’t much information available about the current goods and services that health organizations were offering (Chletsos & Saiti, 2020). Consumers relied on conventional means, such as radio, television, and print media, to get the information they needed. Due to the lack of information available at this time, customers were ill-equipped to choose which healthcare items to use. This had a severe impact on their capacity to make informed selections. However, this environment changed with the development of internet technology. The amount of information that is now readily available about the goods and services provided by various healthcare organizations has significantly increased since the advent of the internet. The internet has made it possible for internet marketers to access a larger consumer base. The cost-benefit analysis of the currently available products is another topic of conversation that customers might have with other consumers. Similar effects of internet technology can be seen in how quickly customers use the services that are already available. Due to enterprises reaching a larger consumer base and consumers being more aware of their demands than in the pre-internet era, a high rate of service consumption has been reported in the post-internet era (Jones, 2020). As a result, customers make more precise, well-informed selections now than they did in the past. As a result, mental weariness serves as the first example of how the assumption operates outside of the realm of healthcare. Customers are more reluctant to compromise and make trade-offs, which is a critical component of decision making, the more decisions they make. It becomes difficult for the brain to carefully weigh the consequences after making a lot of decisions. The decision-making timeline is the other piece of evidence. Choice overload is the foundation of this concept. In other words, even though consumers want to make wise decisions, the abundance of information options deters them from doing so. Preference doubt is the other piece of evidence. Here, consumers may experience decision anxiety and confusion as a result of the complexity of the product information (Rice, 1998). As a result, before making a decision, consumers might forget to describe their inclinations. According to the aforementioned strategies, consumers may have access to sufficient information to make wise decisions but choose not to do so. Therefore, consumers can employ a variety of techniques to simplify the complex decision-making process and ultimately make wise decisions. The strategies include assisting consumers in identifying their needs and preferences, organizing information more effectively, investing in the personalization of product information, highlighting product differences, and indicating the most popular options.
How Does the Assumption Affect Healthcare?
Regarding this assumption’s applicability in healthcare, there are differing opinions. While non-economists support providing consumers with accurate information about a product to aid in their decision-making, economists contend that buying health care is no different from buying other items and that the uncertainty of the health care markets is caused by information defects (Chletsos & Saiti, 2020). Despite this claim, customers’ decisions regarding the healthcare services that are offered are influenced by the information that is available to them. Consumers of healthcare use the information to make well-informed choices on their use of healthcare services and goods. Patients also utilize the data to compare the results of evidence-based studies with the efficacy of the care they got. Consumers occasionally use information from public reporting to decide whether to use a service or product (Rice, 1998). They can have the confidence they want in the efficiency and safety of the healthcare products and services that are available thanks to public reporting systems. There is additional research that shows how little healthcare consumers use the information at their disposal to decide whether to use healthcare services. The first indication is that, in comparison to other products, customers are less likely to research a health care purchase. Ironically, consumers rarely follow professional advise and frequently wind up buying the wrong things, especially if the vendor has too much on hand or if there is a price difference. The second piece of evidence makes the case that education level affects decision-making as well. There is evidence that certain populations, particularly those who are likely to be economically and medically challenged, are less sensitive to report cards than others for a variety of reasons, which ultimately results in bad experiences (Revill et al., 2019). The fragmentation of information caused by several reports on health care that produce varying results is the other piece of evidence. Because of this fragmentation, consumers are unable to make wise decisions (Rice, 1998). Consumers can perform better overall when provided less information. Consumers may become less educated if there is a large amount of information than if there is less information. Additionally, there is a need to create active consumer groups that can represent their interests to ensure effective consumer protection.
Usefulness of Non-Market Changes in Remedying Violations
Non-market adjustment refers to operations that can help a company acquire a competitive advantage but take place outside of the market. When there is a considerable drift in price that threatens the credibility of the goods and services, adjustments work by bringing the price back to normal. Non-market adjustments are frequently made with concern for the laws governing how fairly prices for goods and services are set in a market. Institutions also have methods for evaluating whether the prices for goods and services are not appropriately representational, which is why non-market adjustment is necessary (Chletsos & Saiti, 2020). Non-market corrections work by employing a variety of techniques, such as using public politics to advocate and involve regulators while using private politics to interact with activists. Additionally, non-market adjustments let rival businesses and customers move the market gradually closer to equilibrium. The participants in the market can influence the rules of the industry, involve their social and political environment, and lessen the danger posed by outside forces by non-market adjustments (Frynas et al., 2017). By doing this, businesses are able to set prices for goods and services that are considered to be within the capabilities of the target market.
Conclusion
Because they cannot fulfill all of their wants, consumers must make choices. There must be some opportunity cost associated with choices, as defined by economists. Prior to making a purchase of products or services, economic decision-making entails comparing the opportunity cost and benefits of several financial options. As a result, having product knowledge is essential to enabling educated decision-making. This hypothesis therefore sought to explore how product information influences consumer choices. In turn, it has been determined that product information is essential for guiding consumer choice, but too much information is bad for consumers because it can cause stress and confusion, especially when the consumer has a limited amount of time.
References
M. Chletsos, A. Saiti (2020). Healthcare strategic management and economics. Faller Nature.
J. G. Frynas, J. Child, & S. Y. Tarba (2017). New Integrative Approaches and Interdisciplinary Borrowings in Non-Market Social and Political Strategies. 28(4), 559-574, British Journal of Management. https://doi.org/10.1111/1467-8551.12253
L. Hicks (2020). Health and medical care economics. Learning from Jones & Bartlett.
A. M. Jones (2020). The Health Economics Encyclopedia from Oxford. Press of Oxford University.
Moreno-Serra, R., Revill, P., Suhrcke, & Sculpher, M. J. (2019). Health Policy in Low- and Middle-Income Countries: Global Health Economics. International World Scientific Publishing Pte Ltd
T. H. Rice (1998). Reconsidering Health Economics Press for Health Administration.