An elicitation of utility for quality of life under prospect theory

Attema, Arthur E.; Brouwer, Werner; l’Haridon, Olivier; Pinto, José Luı̀s

doi:10.1016/j.jhealeco.2016.04.002

Cited by 43 publications

(39 citation statements)

References 52 publications

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“…Previous research on individual decision making under risk already reported loss aversion to be expandable from the monetary to the health field (Attema et al, 2013;Attema et al, 2014). Moreover, Polman (2012) found evidence for loss aversion using monetary outcomes when people have to decide on behalf of others, although to a smaller extent than when deciding for themselves.…”

Section: Discussionmentioning

confidence: 99%

Estimating sign-dependent societal preferences for quality of life

Attema

Brouwer

l’Haridon

et al. 2015

Journal of Health Economics

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ABSTRACT. This paper is the first to apply prospect theory to societal health-related decision making. In particular, we allow for utility curvature, equity weighting, sign-dependence, and loss aversion in choices concerning quality of life of other people. We find substantial inequity aversion, both for gains and losses, which can be attributed to both diminishing marginal utility and differential weighting of better-off and worse-off. There are also clear framing effects, which violate expected utility. Moreover, we observe loss aversion, indicating that respondents give more weight to one group's loss than another group's gain of the same absolute magnitude. We also elicited some information on the effect of the age of the studied group. The amount of inequity aversion is to some extent influenced by the age of the considered patients. In particular, more inequity aversion is observed for gains of older people than gains of younger people.

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Section: Discussionmentioning

confidence: 99%

Estimating sign-dependent societal preferences for quality of life

Attema

Brouwer

l’Haridon

et al. 2015

Journal of Health Economics

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“…McNeil et al 1982), and although there has been some limited testing over midrange probabilities of twofold reflection-e.g. Attema et al (2013Attema et al ( , 2016 observed risk aversion over both gains and losses for life years-there has not been any direct testing of the fourfold reflection effect at all.…”

Section: Evidence Of the Reflection Effectmentioning

confidence: 99%

Your money and your life: Risk attitudes over gains and losses

Oliver

2018

J Risk Uncertain

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Prospect theory is the most influential descriptive alternative to the orthodox model of rational choice under risk and uncertainty, in terms of empirical analyses of some of its principal parameters and as a consideration in behavioural public policy. Yet the most distinctive implication of the theory-a fourfold predicted pattern of risk attitudes called the reflection effect-has been infrequently studied and with mixed results over money outcomes, and has never been completely tested over health outcomes. This article reports tests of reflection over money and health outcomes defined by life years gained from treatment. With open valuation exercises, the results suggest qualified support for the reflection effect over money outcomes and strong support over health outcomes. However, in pairwise choice questions, reflection was substantially ameliorated over life years, remaining significant only for treatments that offered short additional durations of life.

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“…of reduced quality of life (end of life context), as it has been observed that preferences for health problems involving quality of life can differ from preferences in situations where outcomes are defined in terms of duration (Attema, Brouwer, & l'Haridon, 2013;Attema, Brouwer, l'Haridon, & Pinto-Prades, 2016). Notice that the outcomes H1 to H4 took the same values in each of the three health contexts.…”

Section: The Health Contextsmentioning

confidence: 99%

Risk attitudes in medical decisions for others: An experimental approach

et al. 2017

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The aim of this paper is to investigate how risk attitudes in medical decisions for others vary across health contexts. A lab experiment was designed to elicit the risk attitudes of 257 medical and nonmedical students by assigning them the role of a physician who must decide between treatments for patients. An interval regression model was used to estimate individual coefficients of relative risk aversion, and an estimation model was used to test for the effect of type of medical decision and experimental design characteristics on elicited risk aversion. We find that (a) risk attitudes vary across different health contexts, but risk aversion prevails in all of them; (b) students enrolled in health-related degrees show a higher degree of risk aversion; and (c) real rewards for third parties (patients) make subjects less risk-averse. The results underline the importance of accounting for attitudes towards risk in medical decision making. | INTRODUCTIONRisk preference has been shown to influence a variety of behaviors under conditions of uncertainty. As would be expected, given the prevalence of such conditions surrounding questions of health care provision, there is an extensive literature on risk attitudes in the health sector, most of which focuses on measuring patient preferences and propensity towards risk. Physicians' risk attitude is also an important element of service provision, but to date, it has received comparatively little attention. The question of whether to administer one treatment or another to a patient is a problem confronted by physicians on a daily basis. In such situations, the physician's attitude towards risk may affect diagnosis patterns and treatment recommendations

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An elicitation of utility for quality of life under prospect theory

Cited by 43 publications

References 52 publications

Estimating sign-dependent societal preferences for quality of life

Estimating sign-dependent societal preferences for quality of life

Your money and your life: Risk attitudes over gains and losses

Risk attitudes in medical decisions for others: An experimental approach

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