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Convergent validity between a discrete choice experiment and a direct, open-ended method: Comparison of preferred attribute levels and willingness to pay estimates

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Listed:
  • Marjon van der Pol
  • Shiell, Alan
  • Au, Flora
  • Johnston, David
  • Tough, Suzanne

Abstract

The Discrete Choice Experiment (DCE) has become increasingly popular as a method for eliciting patient or population preferences. If DCE estimates are to inform health policy, it is crucial that the answers they provide are valid. Convergent validity is tested in this paper by comparing the results of a DCE exercise with the answers obtained from direct, open-ended questions. The two methods are compared in terms of preferred attribute levels and willingness to pay (WTP) values. Face-to-face interviews were held with 292 women in Calgary, Canada. Similar values were found between the two methods with respect to preferred levels for two out of three of the attributes examined. The DCE predicted less well for levels outside the range than for levels inside the range reaffirming the importance of extensive piloting to ensure appropriate level range in DCEs. The mean WTP derived from the open-ended question was substantially lower than the mean derived from the DCE. However, the two sets of willingness to pay estimates were consistent with each other in that individuals who were willing to pay more in the open-ended question were also willing to pay more in the DCE. The difference in mean WTP values between the two approaches (direct versus DCE) demonstrates the importance of continuing research into the different biases present across elicitation methods.

Suggested Citation

  • Marjon van der Pol & Shiell, Alan & Au, Flora & Johnston, David & Tough, Suzanne, 2008. "Convergent validity between a discrete choice experiment and a direct, open-ended method: Comparison of preferred attribute levels and willingness to pay estimates," Social Science & Medicine, Elsevier, vol. 67(12), pages 2043-2050, December.
  • Handle: RePEc:eee:socmed:v:67:y:2008:i:12:p:2043-2050
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    References listed on IDEAS

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    1. Richard Carson & Nicholas Flores & Norman Meade, 2001. "Contingent Valuation: Controversies and Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(2), pages 173-210, June.
    2. Ryan, Mandy & Netten, Ann & Skatun, Diane & Smith, Paul, 2006. "Using discrete choice experiments to estimate a preference-based measure of outcome--An application to social care for older people," Journal of Health Economics, Elsevier, vol. 25(5), pages 927-944, September.
    3. Mandy Ryan, 2004. "A comparison of stated preference methods for estimating monetary values," Health Economics, John Wiley & Sons, Ltd., vol. 13(3), pages 291-296, March.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Thesis Thursday: David Mott
      by Chris Sampson in The Academic Health Economists' Blog on 2019-04-18 06:00:33

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    Cited by:

    1. Jon Helgheim Holte & Peter Sivey & Birgit Abelsen & Jan Abel Olsen, 2016. "Modelling Nonlinearities and Reference Dependence in General Practitioners' Income Preferences," Health Economics, John Wiley & Sons, Ltd., vol. 25(8), pages 1020-1038, August.
    2. Nicolas Krucien & Amiram Gafni & Nathalie Pelletier‐Fleury, 2015. "Empirical Testing of the External Validity of a Discrete Choice Experiment to Determine Preferred Treatment Option: The Case of Sleep Apnea," Health Economics, John Wiley & Sons, Ltd., vol. 24(8), pages 951-965, August.
    3. Alessandro Mengoni & Chiara Seghieri & Sabina Nuti, 2013. "The application of discrete choice experiments in health economics: a systematic review of the literature," Working Papers 201301, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    4. Andor, Mark Andreas & Frondel, Manuel & Horvath, Marco, 2020. "Consequentiality, elicitation formats, and the willingness-to-pay for green electricity: Evidence from Germany," Ruhr Economic Papers 841, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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