Shash DholakiaECO 3413/23/14Final ArticleIn this article, my goal is to link behavioral economics concepts to health economics issues. The goal is to use economics and psychology to explain how patients or doctors deviate from the assumptions of standard economic theory. Through behavioral economic concepts that help researchers analyze and predict the behavior of patients or doctors. Behavioral economics has many applications in medical care, and these ideas can be used to create better health outcomes and stronger policies. I will observe the economic issue of information asymmetry in certain areas of the medical field. According to standard economic theory, decision makers are fully informed and have rational preferences with the goal of maximizing utility. The behavioral economics literature examines patient and physician decision-making from various perspectives, such as the concepts of radical uncertainty and visceral factors. Through research and observation, it is simply “rational” to apply the concepts of behavioral economics. In this sector, uncertainty hangs over every decision in which patients have limited information that influences decisions in an environment of fear and makes choices in a context of fear and trust in the doctor. Every situation in the medical field is unique and this creates many uncertainties. These uncertainties can influence decisions regarding diagnosis, treatment and prognosis. Since this is a very broad topic, I'll narrow it down to a few topics to explain the ideas. I will try to show the decision-making capacity of patients and doctors in risky situations and use the example of end-of-life care to make the argument tangible. I will start by giving an overview...... middle of article..... .d treatment, it is difficult to understand under such stress. This statistic shows the degree of uncertainty that exists in such a complex situation. In the case of lung cancer, a decision maker cannot be sure whether medications will improve life or have side effects. The only information he has is statistical evidence from previous cases. This is an inefficient way of making decisions because each case in medicine is unique. Additionally, with lung cancer at the end of life, one cannot be sure whether radiation or surgery will improve life or make it worse. Making decisions under conditions of radical uncertainty with risk information must be analyzed. Every decision maker is different and it is important to understand how people make decisions under uncertainty because risks do not exist in a vacuum. Risk choices are sensitive to the human response to fear.