Testing the Predictive Validity of the Time Trade-Off and the Standard 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 modeled 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 Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 07.17.
Length: 28 pages
Date of creation: Dec 2007
Date of revision:
Health utility measurement; QALYs; standard gamble; time trade-off; prospect theory.;
Other versions of this item:
- Jose María Abellán-Perpiñán & Han Bleichrodt & Jose Luis Pinto-Prades, 2007. "Testing the predective validity of the time trade-off and the Stardard Gamble," Economic Working Papers at Centro de Estudios Andaluces E2007/14, Centro de Estudios Andaluces.
- 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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