Testing the predective validity of the time trade-off and the Stardard Gamble
AbstractThis paper tests the consistency of health utility measurements with individual preferences. We compare three methods, the time trade-off, the standard gamble and a version of the standard gamble that corrects for the deviations from expected utility modelled by prospect theory. Individual preferences are measured both through a ranking task and through a choice task. In decisions involving no risk the time trade-off is most consistent with people’s preferences with the standard gamble a close second. In decisions involving risk the corrected standard gamble is most consistent with people’s preferences. Our data do not support the common assumption in health economics that utility is transferable across decision contexts.
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Bibliographic InfoPaper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2007/14.
Length: 30 pages
Date of creation: 2007
Date of revision:
Health utility measurement; QALYs; stardard gamble; time trade-off; prospect theory.;
Other versions of this item:
- JOSE MARIA ABELLAN-PERPIÑAN & Han Bleichrodt & Jose Luis Pinto-Prades, 2007. "Testing the Predictive Validity of the Time Trade-Off and the Standard Gamble," Working Papers 07.17, Universidad Pablo de Olavide, Department of Economics.
- I10 - Health, Education, and Welfare - - Health - - - General
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- Attema, Arthur E. & Brouwer, Werner B.F., 2009. "The correction of TTO-scores for utility curvature using a risk-free utility elicitation method," Journal of Health Economics, Elsevier, vol. 28(1), pages 234-243, January.
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