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The impact of information on patient preferences in different delivery patterns : a contingent valuation study of prescription versus OTC drugs

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Author Info
Karine Lamiraud
Konrade von Bremen
Cam Donaldson

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Abstract

Our analysis assessed the impact of information on patients' preferences in prescription vs over-the-counter (OTC) delivery systems. A contingent valuation (CV) study was implemented, randomly assigning 1594 people into the receipt of limited or extended information concerning new influenza drugs. In each information arm, people answered two questions: the first asked about willingness to pay (WTP) for the new prescription drug; the second asked about WTP for the same drug sold OTC. We show that WTP is higher for the OTC scenario and that the level of information plays a significant role in the valuation of the OTC scenario, with more information increasing the WTP. In contrast, the level of information has no impact on WTP for prescription medicine. Thus, for the kind of drug (i.e. safe, not requiring medical supervision) considered here, a switch to OTC status can be expected to be all the more beneficial as the patient is provided with more information concerning the capability of the drug. Conclusions: Our results shed some light on one of the most challenging issues that health policy makers are currently faced with, namely the threat of a bird flu pandemic. Drug delivery is a critical component of pandemic influenza preparedness. Furthermore, the congruence of our results with the agency and demand theories provides an important test of the validity of using WTP based on CV methods.

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Publisher Info
Paper provided by University of Lausanne, Institute of Health Economics and Management (IEMS) in its series Working Papers with number 0901.

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Length: 26 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:hem:wpaper:0901

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Related research
Keywords: WTP; CV; OTC versus prescription; neuraminidase inhibitors; interval-censored regression;

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References listed on IDEAS
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.:
  1. Donaldson, Cam & Thomas, Ruth & Torgerson, David J, 1997. "Validity of Open-Ended and Payment Scale Approaches to Eliciting Willingness to Pay," Applied Economics, Taylor and Francis Journals, vol. 29(1), pages 79-84, January. [Downloadable!] (restricted)
  2. Cameron, Trudy Ann & Huppert, Daniel D., 1989. "OLS versus ML estimation of non-market resource values with payment card interval data," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 230-246, November. [Downloadable!] (restricted)
  3. Bergstrom, John C. & Dillman, B.L. & Stoll, John R., 1985. "Public Environmental Amenity Benefits Of Private Land: The Case Of Prime Agricultural Land," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(01), July. [Downloadable!]
  4. Mullahy, John, 1998. "Much ado about two: reconsidering retransformation and the two-part model in health econometrics," Journal of Health Economics, Elsevier, vol. 17(3), pages 247-281, June. [Downloadable!] (restricted)
  5. Trudy Ann Cameron & Michelle D. James, 1986. "The Determinants of Value for a Recreational Fishing Day: Estimates from a Contingent Valuation Survey," UCLA Economics Working Papers 405, UCLA Department of Economics. [Downloadable!]
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