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Construction of the contingent valuation market in health care:a critical assessment

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Author Info
Richard D. Smith (Health Economics Group, School of Medicine, Health Policy & Practice, University of East Anglia, UK)
Abstract

Contingent valuation (CV) has been criticised for being too hypothetical, with expressed values bearing little relation to actual values. The magnitude of this divergence, however, depends upon how realistic and believable the contingent market is. This paper presents an overview of five key aspects in the construction of the contingent market: (i) scenario development and presentation; (ii) payment vehicle; (iii) expression of risk; (iv) time period of valuation; and (v) survey administration. CV studies in health care since 1985, totalling 111, are critically reviewed with respect to these five aspects. It is concluded that CV studies in health care have performed poorly in the construction, specification and presentation of the contingent market, and that there has been little, if any, improvement in this respect over the last 15 years. Suggestions are made concerning why this may be the case, and how the construction of the contingent market may be improved in future. Copyright © 2002 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.755
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Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 12 (2003)
Issue (Month): 8 ()
Pages: 609-628
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:wly:hlthec:v:12:y:2003:i:8:p:609-628

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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.:
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  15. Jan Abel Olsen & Richard D. Smith, 2001. "Theory versus practice: a review of 'willingness-to-pay' in health and health care," Health Economics, John Wiley & Sons, Ltd., vol. 10(1), pages 39-52.
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  1. Mandy Ryan & Verity Watson, 2009. "Comparing welfare estimates from payment card contingent valuation and discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 389-401. [Downloadable!]
  2. David Whynes & Emma Frew & Jane Wolstenholme, 2005. "Willingness-to-Pay and Demand Curves: A Comparison of Results Obtained Using Different Elicitation Formats," International Journal of Health Care Finance and Economics, Springer, vol. 5(4), pages 369-386, December. [Downloadable!] (restricted)
  3. Zoë Philips & David K. Whynes & Mark Avis, 2006. "Testing the construct validity of willingness to pay valuations using objective information about risk and health benefit," Health Economics, John Wiley & Sons, Ltd., vol. 15(2), pages 195-204. [Downloadable!]
  4. Marie-Odile Carrère & Nathalie Havet & Magali Morelle & Raphaël Remonnay, 2008. "Analyzing the determinants of willingness-to-pay values for testing the validity of the contingent valuation method. Application to home care compared to hospital care," Post-Print halshs-00303725_v1, HAL. [Downloadable!]
  5. Richard D. Smith, 2006. "It's not just what you do, it's the way that you do it: the effect of different payment card formats and survey administration on willingness to pay for health gain," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 281-293. [Downloadable!]
  6. Trine Bergmo & Silje Wangberg, 2007. "Patients’ willingness to pay for electronic communication with their general practitioner," The European Journal of Health Economics, Springer, vol. 8(2), pages 105-110, June. [Downloadable!] (restricted)
  7. Raphaël Remonnay & Nathalie Havet & Magali Morelle & Marie-Odile Carrère, 2008. "Analyzing the determinants of willingness-to-pay values for testing the validity of the contingent valuation method. Application to home care compared to hospital care," Working Papers 0820, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure. [Downloadable!]
  8. Richard D. Smith, 2007. "The role of 'reference goods' in contingent valuation: should we help respondents to 'construct' their willingness to pay?," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1319-1332. [Downloadable!]
  9. Richard D. Smith, 2007. "The relationship between reliability and size of willingness-to-pay values: a qualitative insight," Health Economics, John Wiley & Sons, Ltd., vol. 16(2), pages 211-216. [Downloadable!]
  10. Franz Hackl & Gerald J. Pruckner, 2005. "Warm glow, free-riding and vehicle neutrality in a health-related contingent valuation study," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 293-306. [Downloadable!]
  11. Don Kenkel, 2006. "WTP- and QALY-Based Approaches to Valuing Health for Policy: Common Ground and Disputed Territory," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 34(3), pages 419-437, July. [Downloadable!] (restricted)
  12. Francis Asenso-Boadi & Tim J. Peters & Joanna Coast, 2008. "Exploring differences in empirical time preference rates for health: an application of meta-regression," Health Economics, John Wiley & Sons, Ltd., vol. 17(2), pages 235-248. [Downloadable!]
  13. Raymond Y. T. Yeung & Richard D. Smith & Lai-Ming Ho & Janice M. Johnston & Gabriel M. Leung, 2006. "Empirical implications of response acquiescence in discrete-choice contingent valuation," Health Economics, John Wiley & Sons, Ltd., vol. 15(10), pages 1077-1089. [Downloadable!]
  14. Richard D. Smith & Tracey H. Sach, 2009. "Contingent valuation: (still) on the road to nowhere?," Health Economics, John Wiley & Sons, Ltd., vol. 18(8), pages 863-866. [Downloadable!]
  15. Josephine Borghi, 2008. "Aggregation rules for cost-benefit analysis: a health economics perspective," Health Economics, John Wiley & Sons, Ltd., vol. 17(7), pages 863-875. [Downloadable!]
  16. Richard D. Smith, 2008. "Contingent valuation in health care: does it matter how the 'good' is described?," Health Economics, John Wiley & Sons, Ltd., vol. 17(5), pages 607-617. [Downloadable!]
  17. Laura J. Damschroder & Peter A. Ubel & Jason Riis & Dylan M. Smith, 2007. "An alternative approach for eliciting willingness-to-pay: A randomized Internet trial," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 2, pages 96-106, April. [Downloadable!]
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