Willingness to pay for reductions in health risks when probabilities are distorted

Health Economics

Volumn 15, Issue 2, 2006, Pages 211-214

  Bleichrodt, Han ^a   Eeckhoudt, Louis ^b,c  

^a ERASMUS UNIVERSITY ROTTERDAM   (Netherlands)

^b Facultes Universitaires Catholiques de Mons   (Belgium)

^c UNIVERSITÉ CATHOLIQUE DE LILLE   (France)

Author keywords

Health; Probability weighting; Willingness to pay

Indexed keywords

ARTICLE; DEATH; EMPIRICAL RESEARCH; HEALTH CARE COST; HEALTH ECONOMICS; HEALTH HAZARD; HUMAN; INCOME; MATHEMATICAL ANALYSIS; PRIORITY JOURNAL; PROBABILITY; RELIABILITY; RISK REDUCTION; SENSITIVITY ANALYSIS;

EUROPE; FINANCING, PERSONAL; HUMANS; MODELS, STATISTICAL; PATIENT ACCEPTANCE OF HEALTH CARE; PROBABILITY; RISK REDUCTION BEHAVIOR;

EID: 32044462246     PISSN: 10579230     EISSN: None     Source Type: Journal    
DOI: 10.1002/hec.1073     Document Type: Article

References (17)

1. Camerer CF. Individual decision making. In The Handbook of Experimental Economics, Kagel J, Roth A (eds). Princeton University Press: Princeton, NJ, 1995.
2. Starmer C. Developments in non-expected utility theory: the hunt for a descriptive theory of choice under risk. J Econ Literature 2000; 28: 332-382.
3. Tversky A, Kahneman D. Advances in prospect theory: cumulative representation of uncertainty. J Risk Uncertainty 1992; 5: 297-323.
4. Camerer CF, Ho T-H. Nonlinear weighting of probabilities and violations of the betweenness axiom. J Risk Uncertainty 1994; 8: 167-196.
5. Wu G, Gonzalez R. Curvature of the probability weighting function. Manage Sci 1996; 42: 1676-1690.
6. Gonzalez R, Wu G. On the form of the probability weighting function. Cognitive Psychol 1999; 38: 129-166.
7. Abdellaoui M. Parameter-free elicitation of utilities and probability weighting functions. Manage Sci 2000; 46: 1497-1512.
8. Bleichrodt H, Pinto JL. A parameter-free elicitation of the probability weighting function in medical decision analysis. Manage Sci 2000; 46: 1485-1496.
9. Camerer CF. Prospect theory in the wild: evidence from the field. In Choices, Values and Frames, Kahneman D, Tversky A (eds). Cambridge University Press: New York, 2000.
10. Quiggin J. Risk perception and risk aversion among Australian farmers. Austral J Agric Econ 1981; 25: 160-169.
11. Yaari ME. The dual theory of choice under risk. Econometrica 1987; 55: 95-115.
12. Jones-Lee MW. The value of changes in the probability of death or injury. J Polit Econ 1974; 82: 835-849.
13. Weinstein MC, Shepard DS, Pliskin JS. The economic value of changing mortality probabilities. Quart J Econ 1980; 94: 373-396.
14. Viscusi WK, Evans WN. Utility functions that depend on health status: estimates and economic implications. Am Econ Rev 1990; 80: 353-374.
15. Sloan FA, Viscusi WK, Chesson HW et al. Alternative approaches to valuing intangible health losses: the evidence for multiple sclerosis. J Health Econ 1998; 17: 475-497.
16. Prelec D. The probability weighting function. Econometrica 1998; 66: 497-528.
17. Smith VK, Desvousges WH. An empirical analysis of the economic value of risk changes. J Polit Econ 1987; 95: 89-114.