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Prospect theory in the health domain: A quantitative assessment

  • Attema, Arthur E.
  • Brouwer, Werner B.F.
  • l’Haridon, Olivier

It is well-known that expected utility (EU) has empirical deficiencies. Cumulative prospect theory (CPT) has developed as an alternative with more descriptive validity. However, CPT's full function had not yet been quantified in the health domain. This paper is therefore the first to simultaneously measure utility of life duration, probability weighting, and loss aversion in this domain.

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Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 32 (2013)
Issue (Month): 6 ()
Pages: 1057-1065

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Handle: RePEc:eee:jhecon:v:32:y:2013:i:6:p:1057-1065
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505560

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