“Does the Internet Improve Health Behavior? Costly Information Acquisition under Heterogeneity in Health-Related Risk Perception”

Abstract

No one can remain neutral regarding health information about their conditions. While some focus on the worst-case scenario, others seek justifications for not visiting the doctor. The complexity and diversity of current online health information (OHI) cater to both groups. This paper explains this behavior through the modification of the information acquisition model and further examines its relationship with healthcare utilization. It introduces a rational inattention model with a modified cost function that accounts for individual heterogeneity in perceiving the absence of illness. The model demonstrates that information acquisition costs are influenced by individuals’ concerns about overlooking signs of illness, causing information sources to act as thought accelerators rather than purely educational material. Empirical analysis supports the theoretical framework. First, the data shows that OHI usage generally leads to higher healthcare utilization. Second, OHI users who are concerned about missing illness signs use healthcare services more than those less worried. Third, the statistically insignificant difference in how OHI affects healthcare usage between groups that might benefit from increased concern and those that do not suggests that patients’ overconfidence, rather than knowledgeable worry, drives higher healthcare use. These findings raise critical policy questions about managing OHI-induced overconfidence and offer recommendations for enhancing physician–patient interactions in the context of OHI.