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Willingness to pay for health risk reduction in the context of altruism

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  • Jorge E. Araña

    (University of Las Palmas de Gran Canaria, Spain)

  • Carmelo J. León

    (University of Las Palmas de Gran Canaria, Spain)

Abstract

This paper presents results on the valuation of health risks in the presence of altruism. The contingent valuation method is utilised in a split sample experiment for estimating the private and public values in reducing the risk of flu. Data modelling for the dichotomous choice method follows a Bayesian approach, which accounts for zero responses and is adequate for the comparison of small sample results. The results of the experiment suggest that altruism is a positive component in the value of reducing the probability of flu, which depends positively on the number of days involved, the health status and the personal income of the subject. The marginal value of risk is found to be a decreasing function of the reduction in the probability of becoming ill. Copyright © 2002 John Wiley & Sons, Ltd.

Suggested Citation

  • Jorge E. Araña & Carmelo J. León, 2002. "Willingness to pay for health risk reduction in the context of altruism," Health Economics, John Wiley & Sons, Ltd., vol. 11(7), pages 623-635.
  • Handle: RePEc:wly:hlthec:v:11:y:2002:i:7:p:623-635
    DOI: 10.1002/hec.687
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Rashmita Basu, 2013. "Willingness-to-pay to prevent Alzheimer’s disease: a contingent valuation approach," International Journal of Health Economics and Management, Springer, vol. 13(3), pages 233-245, December.
    2. Martina Menon & Federico Perali & Marcella Veronesi, 2013. "Preferences for Social Inclusion: Empirical Evidence from Juvenile Rehabilitation in Italy," Working Papers 18/2013, University of Verona, Department of Economics.
    3. Svensson, Mikael & Vredin Johansson, Maria, 2007. "Willingness to Pay for Private and Public Safety: Why the Difference?," Working Papers 2007:2, Örebro University, School of Business.
    4. Bosworth, Ryan & Cameron, Trudy Ann & DeShazo, J.R., 2009. "Demand for environmental policies to improve health: Evaluating community-level policy scenarios," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 293-308, May.
    5. Bosworth, Ryan & Cameron, Trudy Ann & DeShazo, J.R., 2015. "Willingness to pay for public health policies to treat illnesses," Journal of Health Economics, Elsevier, vol. 39(C), pages 74-88.
    6. Gyrd-Hansen, Dorte & Kjær, Trine & Seested Nielsen, Jytte, 2016. "The value of mortality risk reductions. Pure altruism – a confounder?," Journal of Health Economics, Elsevier, vol. 49(C), pages 184-192.
    7. Borghi, Josephine & Jan, Stephen, 2008. "Measuring the benefits of health promotion programmes: Application of the contingent valuation method," Health Policy, Elsevier, vol. 87(2), pages 235-248, August.
    8. Mario Andres Fernandez & Douglas Shaw, 2013. "Willingness to pay for intervention policies related to HIV/AIDS: a theoretical framework with endogenous risk, perceived effectiveness and altruism," Economics Bulletin, AccessEcon, vol. 33(2), pages 1457-1467.
    9. Markus König & Christian Pfarr & Peter Zweifel, 2014. "Mutual Altruism: Evidence from Alzheimer Patients and Their Spouse Caregivers," Advances in Health Economics and Health Services Research,in: Preference Measurement in Health, volume 24, pages 141-160 Emerald Publishing Ltd.
    10. Sund, Björn, 2009. "Sensitivity to scope in contingent valuation – introducing a flexible community analogy to communicate mortality risk reductions," Working Papers 2009:2, Örebro University, School of Business.
    11. Dorte Gyrd-Hansen, 2013. "Using the Stated Preference Technique for Eliciting Valuations: The Role of the Payment Vehicle," PharmacoEconomics, Springer, vol. 31(10), pages 853-861, October.
    12. Gyrd-Hansen, Dorte & Kjær, Trine & Nielsen, Jytte Seested, 2016. "The value of mortality risk reductions. Pure altruism - a confounder?," COHERE Working Paper 2016:5, University of Southern Denmark, COHERE - Centre of Health Economics Research.
    13. Messer, Kent D. & Poe, Gregory L. & Schulze, William D., 2008. "The Value of Private Risk Versus the Value of Public Risk: An Experimental Analysis of the Johannesson et al. Conjecture," Working Papers 51141, Cornell University, Department of Applied Economics and Management.
    14. Markus Koenig & Peter Zweifel, 2004. "Willingness-to-pay Against Dementia: Effects of Altruism Between Patients and Their Spouse Caregivers," SOI - Working Papers 0411, Socioeconomic Institute - University of Zurich.
    15. Jorge E. Arana & Carmelo León, 2011. "Scale Perception Bias in the Valuation of Environmental Risks," Post-Print hal-00701866, HAL.
    16. Pedersen, Line Bjørnskov & Gyrd-Hansen, Dorte & Kjær, Trine, 2011. "The influence of information and private versus public provision on preferences for screening for prostate cancer: A willingness-to-pay study," Health Policy, Elsevier, vol. 101(3), pages 277-289, August.
    17. Araña, Jorge E. & León, Carmelo J. & Hanemann, Michael W., 2008. "Emotions and decision rules in discrete choice experiments for valuing health care programmes for the elderly," Journal of Health Economics, Elsevier, vol. 27(3), pages 753-769, May.

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