Construction of the contingent valuation market in health care:a critical assessment
Contingent valuation (CV) has been criticised for being too hypothetical, with expressed values bearing little relation to actual values. The magnitude of this divergence, however, depends upon how realistic and believable the contingent market is. This paper presents an overview of five key aspects in the construction of the contingent market: (i) scenario development and presentation; (ii) payment vehicle; (iii) expression of risk; (iv) time period of valuation; and (v) survey administration. CV studies in health care since 1985, totalling 111, are critically reviewed with respect to these five aspects. It is concluded that CV studies in health care have performed poorly in the construction, specification and presentation of the contingent market, and that there has been little, if any, improvement in this respect over the last 15 years. Suggestions are made concerning why this may be the case, and how the construction of the contingent market may be improved in future. Copyright © 2002 John Wiley & Sons, Ltd.
Volume (Year): 12 (2003)
Issue (Month): 8 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749|
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.:
- F. Reed Johnson & Melissa Ruby Banzhaf & William H. Desvousges, 2000. "Willingness to pay for improved respiratory and cardiovascular health: a multiple-format, stated-preference approach," Health Economics, John Wiley & Sons, Ltd., vol. 9(4), pages 295-317.
- Kahneman, Daniel & Tversky, Amos, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Econometric Society, vol. 47(2), pages 263-91, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Rowe, Robert D. & D'Arge, Ralph C. & Brookshire, David S., 1980. "An experiment on the economic value of visibility," Journal of Environmental Economics and Management, Elsevier, vol. 7(1), pages 1-19, March.
- Johannesson, Magnus & Johansson, Per-Olov & Soderqvist, Tore, 1998.
"Time spent on waiting lists for medical care: an insurance approach,"
Journal of Health Economics,
Elsevier, vol. 17(5), pages 627-644, October.
- Johannesson, Magnus & Johansson, Per-Olov & Söderqvist, Tore, 1997. "Time Spent on Waiting Lists for Medical Care: An Insurance Approach," SSE/EFI Working Paper Series in Economics and Finance 192, Stockholm School of Economics.
- Johannesson, Magnus, 1992. "Economic evaluation of lipid lowering -- A feasibility test of the contingent valuation approach," Health Policy, Elsevier, vol. 20(3), pages 309-320, April.
- 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.
- Alan Diener & Bernie O'Brien & Amiram Gafni, 1998. "Health care contingent valuation studies: a review and classification of the literature," Health Economics, John Wiley & Sons, Ltd., vol. 7(4), pages 313-326.
- Bohm, Peter, 1972. "Estimating demand for public goods: An experiment," European Economic Review, Elsevier, vol. 3(2), pages 111-130.
- 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.
- Bishai, David M. & Lang, Hui Chu, 2000. "The willingness to pay for wait reduction: the disutility of queues for cataract surgery in Canada, Denmark, and Spain," Journal of Health Economics, Elsevier, vol. 19(2), pages 219-230, March.
- Propper, Carol, 1990. "Contingent Valuation of Time Spent on NHS Waiting Lists," Economic Journal, Royal Economic Society, vol. 100(400), pages 193-99, Supplemen.
- Carson, Richard T. & Hanemann, W. Michael, 2006.
Handbook of Environmental Economics,
in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 17, pages 821-936
- Johansson,Per-Olov, 1995. "Evaluating Health Risks," Cambridge Books, Cambridge University Press, number 9780521472852, November.
- Douglas A. Greenley & Richard G. Walsh & Robert A. Young, 1981. "Option Value: Empirical Evidence from a Case Study of Recreation and Water Quality," The Quarterly Journal of Economics, Oxford University Press, vol. 96(4), pages 657-673.
- Norinder, Anna & Hjalte, Krister & Persson, Ulf, 2001. "Scope and scale insensitivities in a contingent valuation study of risk reductions," Health Policy, Elsevier, vol. 57(2), pages 141-153, August.
- Johansson,Per-Olov, 1995. "Evaluating Health Risks," Cambridge Books, Cambridge University Press, number 9780521478786, November.
- Eckerlund, Ingemar & Johannesson, Magnus & Johansson, Per-Olov & Tambour, Magnus & Zethraeus, Niklas, 1995. "Value for money? A contingent valuation study of the optimal size of the Swedish health care budget," Health Policy, Elsevier, vol. 34(2), pages 135-143, November.
- Mandy Ryan & Jenny Hughes, 1997. "Using Conjoint Analysis to Assess Women's Preferences for Miscarriage Management," Health Economics, John Wiley & Sons, Ltd., vol. 6(3), pages 261-273.
- Birch, Stephen & Gafni, Amiram, 1993. "Changing the problem to fit the solution: Johannesson and Weinstein's (mis) application of economics to real world problems," Journal of Health Economics, Elsevier, vol. 12(4), pages 469-476, December.
- Fischhoff, Baruch & Furby, Lita, 1988. "Measuring Values: A Conceptual Framework for Interpreting Transactions with Special Reference to Contingent Valuation of Visibility," Journal of Risk and Uncertainty, Springer, vol. 1(2), pages 147-84, June.
- Alan Randall & Orlen Grunewald & Sue Johnson & Richard Ausness & Angelos Pagoulatos, 1978. "Reclaiming Coal Surface Mines in Central Appalachia: A Case Study of the Benefits and Costs," Land Economics, University of Wisconsin Press, vol. 54(4), pages 472-489.
- Charles Blackorby & David Donaldson & David Moloney, 1984. "Consumer's Surplus and Welfare Change in a Simple Dynamic Model," Review of Economic Studies, Oxford University Press, vol. 51(1), pages 171-176.
When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:12:y:2003:i:8:p:609-628. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.