An alternative approach for eliciting willingness-to-pay: A randomized Internet trial
Open-ended methods that elicit willingness-to-pay (WTP) in terms of absolute dollars often result in high rates of questionable and highly skewed responses, insensitivity to changes in health state, and raise an ethical issue related to its association with personal income. We conducted a 2x2 randomized trial over the Internet to test 4 WTP formats: 1) WTP in dollars; 2) WTP as a percentage of financial resources; 3) WTP in terms of monthly payments; and 4) WTP as a single lump-sum amount. WTP as a percentage of financial resources generated fewer questionable values, had better distribution properties, greater sensitivity to severity of health states, and was not associated with income. WTP elicited on a monthly basis also showed promise.
Volume (Year): 2 (2007)
Issue (Month): (April)
|Contact details of provider:|| |
References listed on IDEAS
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.:
- Payne, John W & Bettman, James R & Schkade, David A, 1999. "Measuring Constructed Preferences: Towards a Building Code," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 243-70, December.
- B O'Brien & A Gafni, 1996. "When Do the "Dollars" Make Sense? Toward a Conceptual Framework for Contingent Valuation Studies in Health Care," Centre for Health Economics and Policy Analysis Working Paper Series 1996-22, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
- Jan Abel Olsen & Richard D. Smith, 2001. "Theory versus practice: a review of 'willingness-to-pay' in health and health care," Health Economics, John Wiley & Sons, Ltd., vol. 10(1), pages 39-52.
- Alan Diener & Bernie O'Brien & Amiram Gafni, 1998.
"Health care contingent valuation studies: a review and classification of the literature,"
John Wiley & Sons, Ltd., vol. 7(4), pages 313-326.
- A Diener & B O'Brien & A Gafni, 1997. "Health Care Contingent Valuation Studies: A review and classification of the literature," Centre for Health Economics and Policy Analysis Working Paper Series 1997-07, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
- Smith, Richard D., 2005. "Sensitivity to scale in contingent valuation: the importance of the budget constraint," Journal of Health Economics, Elsevier, vol. 24(3), pages 515-529, May.
- Cam Donaldson & Ruth Thomas & David Torgerson, 1997. "Validity of open-ended and payment scale approaches to eliciting willingness to pay," Applied Economics, Taylor & Francis Journals, vol. 29(1), pages 79-84.
- Abelson, Julia & Eyles, John & McLeod, Christopher B. & Collins, Patricia & McMullan, Colin & Forest, Pierre-Gerlier, 2003. "Does deliberation make a difference? Results from a citizens panel study of health goals priority setting," Health Policy, Elsevier, vol. 66(1), pages 95-106, October.
- Watson, Verity & Ryan, Mandy, 2007. "Exploring preference anomalies in double bounded contingent valuation," Journal of Health Economics, Elsevier, vol. 26(3), pages 463-482, May.
- Olsen, Jan Abel & Donaldson, Cam & Shackley, Phil, 2005. "Implicit versus explicit ranking: On inferring ordinal preferences for health care programmes based on differences in willingness-to-pay," Journal of Health Economics, Elsevier, vol. 24(5), pages 990-996, September.
- Klose, Thomas, 1999. "The contingent valuation method in health care," Health Policy, Elsevier, vol. 47(2), pages 97-123, May.
- Smith, Richard D. & Richardson, Jeff, 2005. "Can we estimate the `social' value of a QALY?: Four core issues to resolve," Health Policy, Elsevier, vol. 74(1), pages 77-84, September.
- Cam Donaldson & Stephen Birch & Amiram Gafni, 2002. "The distribution problem in economic evaluation: income and the valuation of costs and consequences of health care programmes," Health Economics, John Wiley & Sons, Ltd., vol. 11(1), pages 55-70.
- David K. Whynes & Jane L. Wolstenholme & Emma Frew, 2004. "Evidence of range bias in contingent valuation payment scales," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 183-190.
- Richard D. Smith, 2003. "Construction of the contingent valuation market in health care:a critical assessment," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 609-628.
- F. Thomas Juster & Richard Suzman, 1995. " An Overview of the Health and Retirement Study," Journal of Human Resources, University of Wisconsin Press, vol. 30, pages s7-s56.
- Kahneman, Daniel & Ritov, Ilana & Schkade, David A, 1999. "Economic Preferences or Attitude Expressions?: An Analysis of Dollar Responses to Public Issues," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 203-35, December.
- Robert Sugden, 2005. "Anomalies and Stated Preference Techniques: A Framework for a Discussion of Coping Strategies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(1), pages 1-12, 09.
When requesting a correction, please mention this item's handle: RePEc:jdm:journl:v:2:y:2007:i::p:96-106. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jonathan Baron)
If references are entirely missing, you can add them using this form.