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Decision making heuristics and the elicitation of preferences: being fast and frugal about the future

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  • John Cairns
  • Marjon van der Pol
  • Andrew Lloyd

Abstract

It has been suggested that individuals employ simple decision heuristics when answering stated preference questions. Evidence from discrete choice experiments of individuals failing to trade may indicate that they employ simple decision making heuristics. However, individuals might not trade because their preferences are not captured by the range of trade‐offs they are offered. This is explored by offering a series of choices where the trade‐offs implied by subsequent choices depend on the subject's responses to previous choices. The results suggest that individuals answer discrete choices without recourse to simplifying heuristics, and that information is generated on their preferences rather than on how they make such choices. Copyright © 2002 John Wiley & Sons, Ltd.

Suggested Citation

  • John Cairns & Marjon van der Pol & Andrew Lloyd, 2002. "Decision making heuristics and the elicitation of preferences: being fast and frugal about the future," Health Economics, John Wiley & Sons, Ltd., vol. 11(7), pages 655-658, October.
  • Handle: RePEc:wly:hlthec:v:11:y:2002:i:7:p:655-658
    DOI: 10.1002/hec.720
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    File URL: https://doi.org/10.1002/hec.720
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    References listed on IDEAS

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    1. Ryan, Mandy & Scott, David A. & Donaldson, Cam, 2004. "Valuing health care using willingness to pay: a comparison of the payment card and dichotomous choice methods," Journal of Health Economics, Elsevier, vol. 23(2), pages 237-258, March.
    2. van der Pol, Marjon & Cairns, John, 2001. "Estimating time preferences for health using discrete choice experiments," Social Science & Medicine, Elsevier, vol. 52(9), pages 1459-1470, May.
    3. Stirling Bryan & Martin Buxton & Robert Sheldon & Alison Grant, 1998. "Magnetic resonance imaging for the investigation of knee injuries: an investigation of preferences," Health Economics, John Wiley & Sons, Ltd., vol. 7(7), pages 595-603, November.
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    Cited by:

    1. Christopher McCabe & Mike Paulden & James O'Mahony & Richard Edlin & Anthony Culyer, 2014. "Life at a premium: considering an end-of-life premium in Value Based Reimbursement," Working Papers 1407, Academic Unit of Health Economics, Leeds Institute of Health Sciences, University of Leeds.
    2. McCabe, Christopher & Brazier, John & Gilks, Peter & Tsuchiya, Aki & Roberts, Jennifer & O'Hagan, Anthony & Stevens, Katherine, 2006. "Using rank data to estimate health state utility models," Journal of Health Economics, Elsevier, vol. 25(3), pages 418-431, May.
    3. Mandy Ryan & Mabelle Amaya‐Amaya, 2005. "‘Threats’ to and hopes for estimating benefits," Health Economics, John Wiley & Sons, Ltd., vol. 14(6), pages 609-619, June.
    4. Arne Risa Hole & Richard Norman & Rosalie Viney, 2016. "Response Patterns in Health State Valuation Using Endogenous Attribute Attendance and Latent Class Analysis," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 212-224, February.
    5. Kaiying Wang & Chris Barr & Richard Norman & Stacey George & Craig Whitehead & Julie Ratcliffe, 2021. "Using Eye-Tracking Technology with Older People in Memory Clinics to Investigate the Impact of Mild Cognitive Impairment on Choices for EQ-5D-5L Health States Preferences," Applied Health Economics and Health Policy, Springer, vol. 19(1), pages 111-121, January.
    6. Emily Lancsar & Jordan Louviere, 2006. "Deleting ‘irrational’ responses from discrete choice experiments: a case of investigating or imposing preferences?," Health Economics, John Wiley & Sons, Ltd., vol. 15(8), pages 797-811, August.
    7. Kaiying Wang & Chris Barr & Richard Norman & Stacey George & Craig Whitehead & Julie Ratcliffe, 0. "Using Eye-Tracking Technology with Older People in Memory Clinics to Investigate the Impact of Mild Cognitive Impairment on Choices for EQ-5D-5L Health States Preferences," Applied Health Economics and Health Policy, Springer, vol. 0, pages 1-11.
    8. Mike Burton & Dan Rigby, 2009. "Hurdle and Latent Class Approaches to Serial Non-Participation in Choice Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 211-226, February.
    9. Nicolas Krucien & Jonathan Sicsic & Mandy Ryan, 2019. "For better or worse? Investigating the validity of best–worst discrete choice experiments in health," Health Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 572-586, April.

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