IDEAS home Printed from https://ideas.repec.org/a/spr/pharme/v38y2020i1d10.1007_s40273-019-00834-0.html
   My bibliography  Save this article

Demand for Precision Medicine: A Discrete-Choice Experiment and External Validation Study

Author

Listed:
  • Dean A. Regier

    (BC Cancer
    University of British Columbia)

  • David L. Veenstra

    (University of Washington)

  • Anirban Basu

    (University of Washington)

  • Josh J. Carlson

    (University of Washington)

Abstract

Background A limited evidence base and lack of clear clinical guidelines challenge healthcare systems’ adoption of precision medicine. The effect of these conditions on demand is not understood. Objective This research estimated the public’s preferences and demand for precision medicine outcomes. Methods A discrete-choice experiment survey was conducted with an online sample of the US public who had recent healthcare experience. Statistical analysis was undertaken using an error components mixed logit model. The responsiveness of demand in the context of a changing evidence base was estimated through the price elasticity of demand. External validation was examined using real-world demand for the 21-gene recurrence score assay for breast cancer. Results In total, 1124 (of 1849) individuals completed the web-based survey. The most important outcomes were survival gains with statistical uncertainty, cost of testing, and medical expert agreement on changing care based on test results. The value ($US, year 2017 values) for a test where most (vs. few) experts agreed to changing treatment based on test results was $US1100 (95% confidence interval [CI] 916–1286). Respondents were willing to pay $US265 (95% CI 46–486) for a test that could result in greater certainty around life-expectancy gains. The predicted demand of the assay was 9% in 2005 and 66% in 2014, compared with real-world uptake of 7% and 71% (root-mean-square prediction error 0.11). Demand was sensitive to price (1% increase in price resulted in > 1% change in demand) when first introduced and insensitive to price (1% increase in price resulted in

Suggested Citation

  • Dean A. Regier & David L. Veenstra & Anirban Basu & Josh J. Carlson, 2020. "Demand for Precision Medicine: A Discrete-Choice Experiment and External Validation Study," PharmacoEconomics, Springer, vol. 38(1), pages 57-68, January.
    • Handle: RePEc:spr:pharme:v:38:y:2020:i:1:d:10.1007_s40273-019-00834-0
    DOI: 10.1007/s40273-019-00834-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40273-019-00834-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40273-019-00834-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brownstone, David & Train, Kenneth, 1998. "Forecasting new product penetration with flexible substitution patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 109-129, November.
    2. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
    3. Office of Health Economics, 2007. "The Economics of Health Care," For School 001490, Office of Health Economics.
    4. Matthew Quaife & Fern Terris-Prestholt & Gian Luca Di Tanna & Peter Vickerman, 2018. "How well do discrete choice experiments predict health choices? A systematic review and meta-analysis of external validity," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(8), pages 1053-1066, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Veenstra David L. & Basu Anirban & Mandelblatt Jeanne & Neumann Peter & Peterson Josh F. & Ramsey Scott D., 2020. "Health Economics Tools and Precision Medicine: Opportunities and Challenges," Forum for Health Economics & Policy, De Gruyter, vol. 23(1), pages 1-14, June.
    2. John Buckell & Vrinda Vasavada & Sarah Wordsworth & Dean A. Regier & Matthew Quaife, 2022. "Utility maximization versus regret minimization in health choice behavior: Evidence from four datasets," Health Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 363-381, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petrolia, Daniel R. & Walton, William C. & Sarah, Acquah, 2014. "A National Survey of Consumer Preferences for Branded Gulf Oysters and Risk Perceptions of Gulf Seafood," Research Reports 190586, Mississippi State University, Department of Agricultural Economics.
    2. Erdem, Seda & Rigby, Dan & Wossink, Ada, 2012. "Using best–worst scaling to explore perceptions of relative responsibility for ensuring food safety," Food Policy, Elsevier, vol. 37(6), pages 661-670.
    3. Erdem, Seda & Rigby, Dan, 2011. "Using Best Worst Scaling To Investigate Perceptions Of Control & Concern Over Food And Non-Food Risks," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108790, Agricultural Economics Society.
    4. Paleti, Rajesh, 2018. "Generalized multinomial probit Model: Accommodating constrained random parameters," Transportation Research Part B: Methodological, Elsevier, vol. 118(C), pages 248-262.
    5. Herriges, Joseph A. & Phaneuf, Daniel J., 1999. "Controlling for Correlation Across Choice Occasions and Sites in a Repeated Mixed Logit Model of Recreation Demand," Western Region Archives 321717, Western Region - Western Extension Directors Association (WEDA).
    6. Frick, Bernd & Barros, Carlos Pestana & Prinz, Joachim, 2010. "Analysing head coach dismissals in the German "Bundesliga" with a mixed logit approach," European Journal of Operational Research, Elsevier, vol. 200(1), pages 151-159, January.
    7. Epstein, Andrew J., 2010. "Effects of report cards on referral patterns to cardiac surgeons," Journal of Health Economics, Elsevier, vol. 29(5), pages 718-731, September.
    8. Printezis, Iryna & Grebitus, Carola, 2018. "Marketing Channels for Local Food," Ecological Economics, Elsevier, vol. 152(C), pages 161-171.
    9. Siikamki, Juha, 2001. "Valuing Benefits of Finnish Forest Biodiversity Conservation: Fixed and Random Parameter Logit Models for Pooled Contingent Valuation and Contingent Rating/Ranking Survey Data," Western Region Archives 321696, Western Region - Western Extension Directors Association (WEDA).
    10. Basu, Debasis & Hunt, John Douglas, 2012. "Valuing of attributes influencing the attractiveness of suburban train service in Mumbai city: A stated preference approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(9), pages 1465-1476.
    11. Deka, Devajyoti & Carnegie, Jon, 2021. "Predicting transit mode choice of New Jersey workers commuting to New York City from a stated preference survey," Journal of Transport Geography, Elsevier, vol. 91(C).
    12. Useche, Pilar & Barham, Bradford & Foltz, Jeremy, 2006. "A Trait Specific Model of GM Crop Adoption by Minnesota and Wisconsin Corn Farmers," Working Papers 201525, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    13. Solomon Tarfasa & Roy Brouwer, 2013. "Estimation of the public benefits of urban water supply improvements in Ethiopia: a choice experiment," Applied Economics, Taylor & Francis Journals, vol. 45(9), pages 1099-1108, March.
    14. Scheufele, Gabriela & Bennett, Jeffrey W., 2010. "Ordering effects and strategic response in discrete choice experiments," Research Reports 107743, Australian National University, Environmental Economics Research Hub.
    15. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    16. Stephane Hess & John W. Polak, 2004. "An analysis of parking behaviour using discrete choice models calibrated on SP datasets," ERSA conference papers ersa04p60, European Regional Science Association.
    17. Che, Yi & Du, Julan & Lu, Yi & Tao, Zhigang, 2017. "Institutional Difference and FDI Location Choice: Evidence from China," MPRA Paper 77158, University Library of Munich, Germany.
    18. Layton, David F., 2000. "Random Coefficient Models for Stated Preference Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 21-36, July.
    19. Marva Stithou & Yiannis Kountouris & Phoebe Koundouri, 2011. "A Choice Experiments Application in Transport Infrastructure: A case study on travel time savings, accidents and pollution reduction," DEOS Working Papers 1116, Athens University of Economics and Business.
    20. Hackbarth, André & Madlener, Reinhard, 2016. "Willingness-to-pay for alternative fuel vehicle characteristics: A stated choice study for Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 89-111.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:pharme:v:38:y:2020:i:1:d:10.1007_s40273-019-00834-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.