Risky Choices
Written by Editor   
Thursday, October 02, 2014 02:41 PM

A new study suggests that people may put their health in danger by misjudging the risks of medical treatments. Patients see a catastrophic outcome as less likely when its risk is listed alongside more benign afflictions.

“Consumers may unwittingly expose themselves to substantial danger,” write the authors. “Patients may be more likely to take medical drugs with potentially harmful side effects if they learn about the drug’s relatively minor side effects along with the drug’s more serious ones.”

That irrationality may also affect the way people make financial choices. The researchers note that people might be more amenable to investing in risky assets “if relatively minor dangers of such investments are noted in addition to more major risks.” By the same logic, they might be less likely to buy homeowners insurance if providers “describe the minor damages that can befall homeowners in addition to the serious setbacks that can occur.”

 Source:  http://www.businessweek.com/articles/2014-09-26/youre-probably-wrong-about-how-risky-your-prescriptions-are