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Design techniques for stated preference methods in health economics

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Author Info
Fredrik Carlsson (Department of Economics, Göteborg University, Gothenburg, Sweden)
Peter Martinsson (Department of Economics, Lund University, Lund, Sweden)

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Abstract

This paper discusses different design techniques for stated preference surveys in health economic applications. In particular, we focus on different design techniques, i.e. how to combine the attribute levels into alternatives and choice sets, for choice experiments. Design is a vital issue in choice experiments since the combination of alternatives in the choice sets will determine the degree of precision obtainable from the estimates and welfare measures. In this paper we compare orthogonal, cyclical and D-optimal designs, where the latter allows expectations about the true parameters to be included when creating the design. Moreover, we discuss how to obtain prior information on the parameters and how to conduct a sequential design procedure during the actual experiment in order to improve the precision in the estimates. The designs are evaluated according to their ability to predict the true marginal willingness to pay under different specifications of the utility function in Monte Carlo simulations. Our results suggest that the designs produce unbiased estimations, but orthogonal designs result in larger mean square error in comparison to D-optimal designs. This result is expected when using correct priors on the parameters in D-optimal designs. However, the simulations show that welfare measures are not very sensitive if the choice sets are generated from a D-optimal design with biased priors. Copyright © 2002 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.729
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 12 (2003)
Issue (Month): 4 ()
Pages: 281-294
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Handle: RePEc:wly:hlthec:v:12:y:2003:i:4:p:281-294

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. F. Reed Johnson & Melissa Ruby Banzhaf & William H. Desvousges, 2000. "Willingness to pay for improved respiratory and cardiovascular health: a multiple-format, stated-preference approach," Health Economics, John Wiley & Sons, Ltd., vol. 9(4), pages 295-317.
  2. Vick, Sandra & Scott, Anthony, 1998. "Agency in health care. Examining patients' preferences for attributes of the doctor-patient relationship," Journal of Health Economics, Elsevier, vol. 17(5), pages 587-605, October. [Downloadable!] (restricted)
  3. Alberini Anna, 1995. "Optimal Designs for Discrete Choice Contingent Valuation Surveys: Single-Bound, Double-Bound, and Bivariate Models," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 287-306, May. [Downloadable!] (restricted)
  4. Barbara J. Kanninen, 1993. "Optimal Experimental Design for Double-Bounded Dichotomous Choice Contingent Valuation," Land Economics, University of Wisconsin Press, vol. 69(2), pages 138-146. [Downloadable!] (restricted)
  5. Verhoef, C. G. & Maas, A. & Stalpers, L. J. A. & Verbeek, A. L. M. & Wobbes, Th. & van Daal, W. A. J., 1991. "The feasibility of additive conjoint measurement in measuring utilities in breast cancer patients," Health Policy, Elsevier, vol. 17(1), pages 39-50, February. [Downloadable!] (restricted)
  6. Kanninen Barbara J., 1993. "Design of Sequential Experiments for Contingent Valuation Studies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages S1-S11, July. [Downloadable!] (restricted)
  7. Mandy Ryan & Jenny Hughes, 1997. "Using Conjoint Analysis to Assess Women's Preferences for Miscarriage Management," Health Economics, John Wiley & Sons, Ltd., vol. 6(3), pages 261-273.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Morkbak, M.R. & Christensen, T. & Gyrd-Hansen, D.E., 2008. "Consumers want safer meat - but not at all costs," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44319, European Association of Agricultural Economists. [Downloadable!]
  2. Kragt, Marit E. & Bennett, J.W., 2009. "Using choice experiments to value river and estuary health in Tasmania with individual preference heterogeneity," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48058, Australian Agricultural and Resource Economics Society. [Downloadable!]
    Other versions:
  3. Carlsson, Fredrik & Martinsson, Peter, 2006. "How much is too much? - An investigation of the effect of the number of choice sets, starting point and the choice of bid vectors in choice experiments," Working Papers in Economics 191, Göteborg University, Department of Economics. [Downloadable!]
  4. Julia Witt & Anthony Scott & Richard H. Osborne, 2006. "Designing Choice Experiments with Many Attributes: An Application to Setting Priorities for Orthopaedic Waiting Lists," Melbourne Institute Working Paper Series wp2006n24, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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  5. Silvia Ferrini & Riccardo Scarpa, 2005. "Experimental Designs for Environmental Valuation with Choice-Experiments: A Monte-Carlo Investigation," Working Papers in Economics 05/08, University of Waikato, Department of Economics. [Downloadable!]
  6. Abou-Ali, Hala & Carlsson, Fredrik, 2004. "Evaluating the welfare effects of improved water quality using the choice experiment method," Working Papers in Economics 131, Göteborg University, Department of Economics. [Downloadable!]
  7. Sean Puckett & David Hensher & John Rose & Andrew Collins, 2007. "Design and development of a stated choice experiment for interdependent agents: accounting for interactions between buyers and sellers of urban freight services," Transportation, Springer, vol. 34(4), pages 429-451, July. [Downloadable!] (restricted)
  8. Zanni, Alberto M. & Davidova, Sophia & Bailey, Alastair, 2006. "Analysis of Vocational and Residential Preferences of Rural Population: Application of an Experimental Technique to Rural Slovenia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25534, International Association of Agricultural Economists. [Downloadable!]
  9. Gao, Zhifeng & Yu, Xiaohua & House, Lisa O., 2009. "Using Choice Experiment to Estimate Consumer Valuation: the Role of Experiment Design and Attribute Information Loads," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49406, Agricultural and Applied Economics Association. [Downloadable!]
  10. Fredrik Carlsson & Peter Martinsson, 2008. "How Much is Too Much?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 40(2), pages 165-176, June. [Downloadable!] (restricted)
  11. David Hensher & John Rose, 2009. "Toll product preferences and implications for alternative payment options and going cashless," Transportation, Springer, vol. 36(2), pages 131-145, March. [Downloadable!] (restricted)
  12. Abou-Ali, Hala, 2003. "Using stated preference methods to evaluate the impact of water on health: the case of metropolitan Cairo," Working Papers in Economics 113, Göteborg University, Department of Economics. [Downloadable!]
  13. Catalina M. Torres Figuerola & Nick Hanley & Antoni Riera Font, 2008. "The implications of incorrect utility function specification for welfare measurement in choice experiments," CRE Working Papers (Documents de treball del CRE) 2008/6, Centre de Recerca Econòmica (UIB ·"Sa Nostra"). [Downloadable!]
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  14. Anna Merino, 2003. "Demand for Pharmaceutical Drugs: A Choice Modelling Experiment," Working Papers, Research Center on Health and Economics 704, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  15. Junyi Shen & Tatsuyoshi Saijo, 2007. "Does energy efficiency label alter consumersf purchase decision? A latent class approach on Shanghai data," OSIPP Discussion Paper 07E005, Osaka School of International Public Policy, Osaka University. [Downloadable!]
  16. Anna Merino, 2003. "Demand for Pharmaceutical Drugs: A Choice Modelling Experiment," Economics Working Papers 704, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  17. Keiko Aoki, 2009. "Do consumers select food products based on carbon dioxide emissions? Evidence from a buying experiment in Japan," ISER Discussion Paper 0749, Institute of Social and Economic Research, Osaka University. [Downloadable!]
  18. Rosalie Viney & Elizabeth Savage & Jordan Louviere, 2005. "Empirical investigation of experimental design properties of discrete choice experiments in health care," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 349-362. [Downloadable!]
  19. Marit E. Kragt & Jeff Bennett, 2008. "Developing a Questionnaire for Valuing Changes in Natural Resource Management in the George Catchment, Tasmania," Environmental Economics Research Hub Research Reports 0808, Environmental Economics Research Hub, Crawford School, Australian National University. [Downloadable!]
  20. Minhaj Mahmud, 2006. "Using Choice Experiments to Measure Relative Values of Statistical Lives: Evidence from Bangladesh," Keele Economics Research Papers KERP 2006/02, Centre for Economic Research, Keele University. [Downloadable!]
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