A consistency test of the time trade-off
AbstractThis paper tests the internal consistency of time trade-off utilities. We find significant violations of consistency in the direction predicted by loss aversion. The violations disappear for higher gauge durations. We show that loss aversion can also explain that for short gauge durations time trade-off utilities exceed standard gamble utilities. Our results suggest that time trade-off measurements that use relatively short gauge durations, like the widely used EuroQol algorithm (Dolan 1997), are affected by loss aversion and lead to utilities that are too high.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Health Economics.
Volume (Year): 22 (2003)
Issue (Month): 6 (November)
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Web page: http://www.elsevier.com/locate/inca/505560
Other versions of this item:
- Han Bleichrodt & José Luis Pinto & José María Abellán-Perpiñán, 2003. "A consistency test of the time trade-off," Working Papers, Research Center on Health and Economics 676, Department of Economics and Business, Universitat Pompeu Fabra.
- Han Bleichrodt & José Luis Pinto & José María Abellán-Perpiñán, 2003. "A consistency test of the time trade-off," Economics Working Papers 676, Department of Economics and Business, Universitat Pompeu Fabra.
- I10 - Health, Education, and Welfare - - Health - - - General
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