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Estimating the population utility function: A parametric Bayesian approach

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  • Musal, R. Muzaffer
  • Soyer, Refik
  • McCabe, Christopher
  • Kharroubi, Samer A.

Abstract

In this paper we consider the health utility index mark II for quantifying and describing a population’s health related quality of life over health states composed of multiple attributes. This measure can be used for various purposes such as evaluating the severity of the effect of a disease or comparing different treatment methods. We present a Bayesian framework for population utility estimation and health policy evaluation by introducing a probabilistic interpretation of the multi-attribute utility theory (MAUT) used in health economics. In doing so, our approach combines ideas from the MAUT and Bayesian statistics and provides an alternative method of modeling preferences and utility estimation.

Suggested Citation

  • Musal, R. Muzaffer & Soyer, Refik & McCabe, Christopher & Kharroubi, Samer A., 2012. "Estimating the population utility function: A parametric Bayesian approach," European Journal of Operational Research, Elsevier, vol. 218(2), pages 538-547.
  • Handle: RePEc:eee:ejores:v:218:y:2012:i:2:p:538-547
    DOI: 10.1016/j.ejor.2011.11.017
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    3. Yuri S. Popkov & Yuri A. Dubnov & Alexey Yu. Popkov, 2016. "New Method of Randomized Forecasting Using Entropy-Robust Estimation: Application to the World Population Prediction," Mathematics, MDPI, vol. 4(1), pages 1-16, March.

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