Explorations of the Effect of Experience on Preferences for a Health-Care Service
AbstractThe standard assumption in economic theory is that preferences do not change as a result of experience with the commodity/service/event. Behavioural scientists have challenged this assumption, claiming that preferences constantly do change as experience is accumulated. This paper tests the effect of experience with a health-care service on preferences for maternity-ward attributes. In order to explore the effect of experience on preferences, the research sample was decomposed into three sub-samples: women pregnant with their first child (no experience); women after one delivery (single experience); and women after more than one delivery (multiple experiences). The preference patterns of the three sub-groups were estimated and compared. A Discrete Choice Experiment (DCE) was employed for establishing the relative importance of the following attributes: number of beds in room; attitude of staff; professionalism of staff; information delivered by personnel; and travel time from residence to hospital. Socio-economic background variables (education, age, and income) were also considered. The basic findings are that preferences change significantly as a result of experience with the health event; that the effect of experience is attribute-specific; that the extent of past experience (number of deliveries) is irrelevant; and that the effect of experience differs by socio-economic status.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6608.
Date of creation: Dec 2007
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Find related papers by JEL classification:
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- I19 - Health, Education, and Welfare - - Health - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-12-19 (All new papers)
- NEP-DCM-2007-12-19 (Discrete Choice Models)
- NEP-LTV-2007-12-19 (Unemployment, Inequality & Poverty)
- NEP-UPT-2007-12-19 (Utility Models & Prospect Theory)
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- Einat Neuman & Shoshona Neuman, 2008. "Reference-dependent preferences and loss aversion: A discrete choice experiment in the health-care sector," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 3, pages 162-173, February.
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