An Integrated Model of Dynamic Problem Solving within Organizational Constraints

Johnathan R. Cromwell; Teresa M. Amabile; Jean-François  Harvey

Chapter | Individual Creativity in the Workplace | 2018

An Integrated Model of Dynamic Problem Solving within Organizational Constraints

by Johnathan R. Cromwell, Teresa M. Amabile and Jean-François Harvey

Abstract

Book Abstract: Rapid technological change, global competition, and economic uncertainty have all contributed to organizations seeking to improve creativity and innovation. Researchers and businesses want to know what factors facilitate or inhibit creativity in a variety of organizational settings. Individual Creativity in the Workplace identifies those factors, including what motivational and cognitive factors influence individual creativity, as well as the contextual factors that impact creativity such as teams and leadership. The book takes research findings out of the lab and provides examples of these findings put to use in real world organizations.

Keywords: Organizations; Problems and Challenges; Creativity;

Format: Print

Citation:

Cromwell, Johnathan R., Teresa M. Amabile, and Jean-François Harvey. "An Integrated Model of Dynamic Problem Solving within Organizational Constraints." In Individual Creativity in the Workplace, edited by Roni Reiter-Palmon, Victoria Kennel, and James C. Kaufman. San Diego, CA: Academic Press, 2018.

Chapter | Handbook of Behavioral Economics | 2019

Behavioral Economics and Health-Care Markets

Amitabh Chandra, Benjamin Handel and Joshua Schwartzstein

This chapter summarizes research in behavioral health economics, focusing on insurance markets and product markets in health care. We argue that the prevalence of choice difficulties and biases leading to mistakes in these markets establish a special place for them in economic analysis. In addition, we argue that while the behavioral health-economics literature has done a better job documenting consumer-choice mistakes in insurance and treatment choices than explaining why those mistakes occur, it is clear that we should not ignore these mistakes in our analyses. We document evidence showing that consumers leave lots of money on the table in their insurance-plan choices, sometimes thousands of dollars. This is true both when consumers make active choices (e.g., they do not have a default plan) and when they make passive choices (e.g., they have a default plan). We discuss the implications of this body of work for the design and regulation of insurance markets, including the interaction between consumer choice difficulties or biases and adverse selection. We then document evidence on consumer mistakes in health-care utilization and treatment choices, especially in response to changes in prices such as copayments and deductibles. We show how choice difficulties or biases may lead patients to respond to such increases in patient cost-sharing by reducing demand for high-value care, muddying the traditional argument that the price elasticity of demand for medical care meaningfully captures the degree of moral hazard. We conclude with directions for future research.

Keywords: Behavioral economics; Consumer Behavior; Economics; Health Care and Treatment; Insurance; Markets;

Citation:

Chandra, Amitabh, Benjamin Handel, and Joshua Schwartzstein. "Behavioral Economics and Health-Care Markets." In Handbook of Behavioral Economics: Foundations and Applications 2, edited by B. Douglas Bernheim, Stefano DellaVigna, and David Laibson. Amsterdam: Elsevier/North-Holland, 2019. View Details

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An Integrated Model of Dynamic Problem Solving within Organizational Constraints

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