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Valuation of health changes with the contingent valuation method: A test of scope and question order effects

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  • Bernt Kartman
  • Nils‐Olov Stålhammar
  • Magnus Johannesson

Abstract

In recent years, there has been a growing interest in the contingent valuation method for measurement of monetary values of various commodities. However, the validity and reliability of the method need to be examined thoroughly. This paper reports results of a test of scope and question order effects in a contingent valuation experiment in the health care field. Using three binary valuation questions, data were collected on willingness to pay for superior treatment of reflux oesophagitis. To test for scope effects, different probabilities of successful short— and long‐term treatments were evaluated using a split sample approach. The presence of question order effects was tested by assigning respondents to different question orders. The contingent valuation method proved sensitive to changes in scope in that the willingness to pay increased with the probability of being free from symptoms and with a reduced risk of having a relapse once recovered. Also, regression analyses indicate that people who suffer from severe reflux oesophagitis are more willing to pay for more effective treatment. No question order effects were detected in the data.

Suggested Citation

  • Bernt Kartman & Nils‐Olov Stålhammar & Magnus Johannesson, 1996. "Valuation of health changes with the contingent valuation method: A test of scope and question order effects," Health Economics, John Wiley & Sons, Ltd., vol. 5(6), pages 531-541, November.
    • Handle: RePEc:wly:hlthec:v:5:y:1996:i:6:p:531-541
    DOI: 10.1002/(SICI)1099-1050(199611)5:63.0.CO;2-J
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    References listed on IDEAS

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    Cited by:

    1. Raymond Y.T. Yeung & Richard D. Smith & Sarah M. McGhee, 2003. "Willingness to pay and size of health benefit: an integrated model to test for ‘sensitivity to scale’," Health Economics, John Wiley & Sons, Ltd., vol. 12(9), pages 791-796, September.
    2. Alan Shiell & Lisa Gold, 2003. "If the price is right: vagueness and values clarification in contingent valuation," Health Economics, John Wiley & Sons, Ltd., vol. 12(11), pages 909-919, November.
    3. Mandy Ryan & Mabelle Amaya‐Amaya, 2005. "‘Threats’ to and hopes for estimating benefits," Health Economics, John Wiley & Sons, Ltd., vol. 14(6), pages 609-619, June.
    4. Richard D. Smith, 2003. "Construction of the contingent valuation market in health care:a critical assessment," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 609-628, August.
    5. Nick Hanley & Mandy Ryan & Robert Wright, 2003. "Estimating the monetary value of health care: lessons from environmental economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(1), pages 3-16, January.
    6. Shinji Takemura & Takashi Ohida & Tomofumi Sone & Takashi Fukuda & Yukie Takemura, 2005. "Influences of the absence of random assignment of bids on estimating willingness to pay using a discrete‐choice question," Health Economics, John Wiley & Sons, Ltd., vol. 14(2), pages 209-213, February.

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