Final answer:
The claim that agency theory suggests consumers do not need physicians to guide treatment decisions is False. Agency theory recognizes the complexity of the patient-healthcare provider relationship and the information asymmetry between them.
Step-by-step explanation:
Behavioral economics also illustrates that decisions are often influenced by factors beyond complete knowledge.
The statement suggesting that agency theory posits that consumers are knowledgeable about their health and the possible treatments available, not needing physicians to guide treatment decisions, is False.
Agency theory actually discusses the relationship between principals (patients) and agents (healthcare providers), with an acknowledgement of information asymmetry and potential conflicts of interest. Patients often rely on the expertise and guidance of healthcare providers due to a lack of specialized medical knowledge.
Additionally, behavioral economics suggests that consumers often make decisions that are less than rational and are influenced by many factors other than complete information, including their state of mind and feelings.
This further supports the idea that consumers may not possess sufficient knowledge to make healthcare decisions without physician guidance.
Various methods of healthcare financing, such as fee-for-service and health maintenance organizations (HMOs), also imply different interactions and dynamics in the decision-making process between patients and providers, with the potential introduction of adverse selection in insurance markets.