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Not all respondents use a multiplicative utility function in choice experiments for health state valuations, which should be reflected in the elicitation format (or statistical analysis)

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  • Marcel F. Jonker
  • Richard Norman

Abstract

Discrete choice experiments (DCEs) that include health states and duration are becoming a common method for estimating quality‐adjusted life year (QALY) tariffs. These DCEs need to be analyzed under the assumption that respondents treat health and duration multiplicatively. However, in the most commonly used DCE duration format there is no guarantee that respondents actually do so; in fact, respondents can easily simplify the choice tasks by considering health and duration separately. This would result in valid DCE responses but preclude subsequent QALY tariff calculations. Using a Bayesian latent class model and data from two existing valuation studies, our analyses confirm that in both datasets the majority of respondents do not appear to have used a multiplicative utility function. Moreover, a statistical correction for respondents who used an incorrect function changes the range of the QALY weights. Hence our results imply that one can neither assume that respondents use the theoretically required multiplicative utility function nor assume that the type of utility function that respondents use does not affect the estimated QALY weights. As a solution, we advise researchers to use an alternative, more constrained DCE elicitation format that avoids these behavioral problems.

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  • Marcel F. Jonker & Richard Norman, 2022. "Not all respondents use a multiplicative utility function in choice experiments for health state valuations, which should be reflected in the elicitation format (or statistical analysis)," Health Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 431-439, February.
  • Handle: RePEc:wly:hlthec:v:31:y:2022:i:2:p:431-439
    DOI: 10.1002/hec.4457
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    References listed on IDEAS

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    1. Brazier, John & Ratcliffe, Julie & Salomon, Joshua & Tsuchiya, Aki, 2016. "Measuring and Valuing Health Benefits for Economic Evaluation," OUP Catalogue, Oxford University Press, edition 2, number 9780198725923.
    2. Marcel F. Jonker & Arthur E. Attema & Bas Donkers & Elly A. Stolk & Matthijs M. Versteegh, 2017. "Are Health State Valuations from the General Public Biased? A Test of Health State Reference Dependency Using Self‐assessed Health and an Efficient Discrete Choice Experiment," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1534-1547, December.
    3. Brendan Mulhern & Richard Norman & Deborah J. Street & Rosalie Viney, 2019. "One Method, Many Methodological Choices: A Structured Review of Discrete-Choice Experiments for Health State Valuation," PharmacoEconomics, Springer, vol. 37(1), pages 29-43, January.
    4. Vikas Soekhai & Esther W. Bekker-Grob & Alan R. Ellis & Caroline M. Vass, 2019. "Discrete Choice Experiments in Health Economics: Past, Present and Future," PharmacoEconomics, Springer, vol. 37(2), pages 201-226, February.
    5. Bleichrodt, Han & Wakker, Peter & Johannesson, Magnus, 1997. "Characterizing QALYs by Risk Neutrality," Journal of Risk and Uncertainty, Springer, vol. 15(2), pages 107-114, November.
    6. Richard Norman & Paula Cronin & Rosalie Viney, 2013. "A Pilot Discrete Choice Experiment to Explore Preferences for EQ-5D-5L Health States," Applied Health Economics and Health Policy, Springer, vol. 11(3), pages 287-298, June.
    7. Nancy J. Devlin & Koonal K. Shah & Yan Feng & Brendan Mulhern & Ben van Hout, 2018. "Valuing health‐related quality of life: An EQ‐5D‐5L value set for England," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 7-22, January.
    8. Arne Risa Hole & Richard Norman & Rosalie Viney, 2016. "Response Patterns in Health State Valuation Using Endogenous Attribute Attendance and Latent Class Analysis," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 212-224, February.
    9. Richard Norman & Rosalie Viney & John Brazier & Leonie Burgess & Paula Cronin & Madeleine King & Julie Ratcliffe & Deborah Street, 2014. "Valuing SF-6D Health States Using a Discrete Choice Experiment," Medical Decision Making, , vol. 34(6), pages 773-786, August.
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    1. Himmler, Sebastian & Jonker, Marcel & van Krugten, Frédérique & Hackert, Mariska & van Exel, Job & Brouwer, Werner, 2022. "Estimating an anchored utility tariff for the well-being of older people measure (WOOP) for the Netherlands," Social Science & Medicine, Elsevier, vol. 301(C).

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