Altruism and the Adoption of an Unscientific Medical Behavior

Brendon Andrews

No 2025-07, Working Papers from University of Alberta, Department of Economics

Abstract: The homeopathic practice of diluting medications by factors of 100 raised to the power of 12, 30, or higher is unscientific. Why did some historical healthcare providers choose homeopathy? An economic model of provider behavior demonstrates that both cost-reduction and altruism for patients can explain its adoption in the early nineteenth century. Altruism can increase dilutionary behavior when undiluted treatment benefits are negative, even for overconfident homeopaths that believe otherwise. Highly altruistic providers who are steadily overconfident but low-quality at regular medicine are drawn to homeopathic practice, but relative profits also matter. Related modern treatment settings imply policy-relevant research directions.

Keywords: Alternative Medicine; Altruism; Healthcare; Homeopathy; Provider Behavior (search for similar items in EconPapers)
JEL-codes: I11 J44 N31 (search for similar items in EconPapers)
Pages: 26
Date: 2025-09
New Economics Papers: this item is included in nep-hea, nep-his and nep-inv
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Persistent link: https://EconPapers.repec.org/RePEc:ris:albaec:021640

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