Do people have a preference for increasing or decreasing pain? An experimental comparison of psychological and economic measures in health related decision making
AbstractThis paper investigates preferences for different health profiles, especially sequences of increasing and decreasing pain. We test conflicting predictions in terms of preferences over two painful sequences. The QALY concept relevant for the determination of different levels of health-related quality of life implies indifference, whereas behavioral theories find preferences related to ordering, following the peak-end-rule. Using an experimental design with real consequences we generate decisions about painful sequences induced by the cold pressor test. The results are compared with hypothetical choice data elicited using standard methods. We find that hypothetical methods reveal decisions in line with the peak-end-rule. However when it comes to real consequences of their decisions, subjects are on average not willing to pay for that preference.
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Bibliographic InfoPaper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number 120012.
Length: 16 pages
Date of creation: Jun 2012
Date of revision:
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More information through EDIRC
pain; peak-end-rule; willingness-to-pay;
Find related papers by JEL classification:
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-23 (All new papers)
- NEP-CBE-2012-07-23 (Cognitive & Behavioural Economics)
- NEP-EVO-2012-07-23 (Evolutionary Economics)
- NEP-EXP-2012-07-23 (Experimental Economics)
- NEP-HEA-2012-07-23 (Health Economics)
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.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Weekly Roundup 181: A Curated Linkfest For The Smartest People On The Web!
by Miguel in Simoleon Sense on 2012-07-29 16:45:36
- How do you want your pain?
by Economic Logician in Economic Logic on 2012-08-02 13:23:00
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