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Using stated preference and revealed preference modeling to evaluate prescribing decisions

Author

Listed:
  • Tami L. Mark

    (Outcomes Research and Econometrics, Medstat, USA)

  • Joffre Swait

    (Advanis Inc. and University of Alberta, Alberta, Canada)

Abstract

The use of stated preference analyses to evaluate choice of health care products has been growing in recent years. This paper shows how revealed preference data can be enriched with stated preference data and highlights the relative advantages of revealed and stated preference data. The techniques were applied to a study of determinants of physicians' prescriptions of alcoholism medications. Analyses were conducted on the relationship between physicians' perceptions of existing alcoholism medication attributes and their prescribing rates of those medications. Analyses were also conducted on physicians' decisions to prescribe hypothetical alcoholism medications with varying attributes such as efficacy, side effects, compliance, mode of action, and price. Finally, analyses were conducted on the combined stated and revealed preference data. Joint estimation suggests that parameters from the revealed and stated preference data are equal, up to scale. Joint analyses highlight how stated preference data can be used to estimate parameters for attributes that are not observed in the marketplace, that do not vary in the marketplace, or that are highly collinear with other attributes in actual markets. Copyright © 2003 John Wiley & Sons, Ltd.

Suggested Citation

  • Tami L. Mark & Joffre Swait, 2004. "Using stated preference and revealed preference modeling to evaluate prescribing decisions," Health Economics, John Wiley & Sons, Ltd., vol. 13(6), pages 563-573.
  • Handle: RePEc:wly:hlthec:v:13:y:2004:i:6:p:563-573
    DOI: 10.1002/hec.845
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    File URL: http://hdl.handle.net/10.1002/hec.845
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    References listed on IDEAS

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    Cited by:

    1. Mickael Bech & Dorte Gyrd-Hansen, 2005. "Effects coding in discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 1079-1083.
    2. Parkinson, Bonny & Goodall, Stephen, 2011. "Considering consumer choice in the economic evaluation of mandatory health programmes: A review," Health Policy, Elsevier, vol. 101(3), pages 236-244, August.
    3. Zhang, Jing & Reed Johnson, F. & Mohamed, Ateesha F. & Hauber, A. Brett, 2015. "Too many attributes: A test of the validity of combining discrete-choice and best–worst scaling data," Journal of choice modelling, Elsevier, vol. 15(C), pages 1-13.
    4. Goodall, Stephen & King, Madeleine & Ewing, Jane & Smith, Narelle & Kenny, Patricia, 2012. "Preferences for support services among adolescents and young adults with cancer or a blood disorder: A discrete choice experiment," Health Policy, Elsevier, vol. 107(2), pages 304-311.
    5. repec:eee:transb:v:109:y:2018:i:c:p:70-89 is not listed on IDEAS
    6. Esther Bekker-Grob & John Rose & Michiel Bliemer, 2013. "A Closer Look at Decision and Analyst Error by Including Nonlinearities in Discrete Choice Models: Implications on Willingness-to-Pay Estimates Derived from Discrete Choice Data in Healthcare," PharmacoEconomics, Springer, vol. 31(12), pages 1169-1183, December.
    7. Que, Sisi & Awuah-Offei, Kwame & Weidner, Nathan & Wang, Yumin, 2017. "Discrete choice experiment validation: A resource project case study," Journal of choice modelling, Elsevier, vol. 22(C), pages 39-50.
    8. Melo, Grace, 2016. "Valuing Groundwater Quality: Does Averting Behavior Matter?," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230001, Southern Agricultural Economics Association.
    9. Bansback, Nick & Brazier, John & Tsuchiya, Aki & Anis, Aslam, 2010. "Using a discrete choice experiment to estimate societal health state utility values," MPRA Paper 29933, University Library of Munich, Germany.
    10. repec:spr:pharme:v:35:y:2017:i:7:d:10.1007_s40273-017-0506-4 is not listed on IDEAS
    11. Harry Telser & Peter Zweifel, 2007. "Validity of discrete-choice experiments evidence for health risk reduction," Applied Economics, Taylor & Francis Journals, vol. 39(1), pages 69-78.
    12. Carlsen, Benedicte & Hole, Arne Risa & Kolstad, Julie Riise & Norheim, Ole Frithjof, 2012. "When you can’t have the cake and eat it too," Social Science & Medicine, Elsevier, vol. 75(11), pages 1964-1973.
    13. Michael Clark & Domino Determann & Stavros Petrou & Domenico Moro & Esther Bekker-Grob, 2014. "Discrete Choice Experiments in Health Economics: A Review of the Literature," PharmacoEconomics, Springer, vol. 32(9), pages 883-902, September.
    14. Pedersen, Line Bjørnskov & Hess, Stephane & Kjær, Trine, 2016. "Asymmetric information and user orientation in general practice: Exploring the agency relationship in a best–worst scaling study," Journal of Health Economics, Elsevier, vol. 50(C), pages 115-130.
    15. Pavel, Md Sadik & Chakrabarty, Sayan & Gow, Jeff, 2014. "Assessing willingness to pay for health care quality improvements," MPRA Paper 68591, University Library of Munich, Germany.
    16. Mandy Ryan & Karen Gerard & Gillian Currie, 2012. "Using Discrete Choice Experiments in Health Economics," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 41 Edward Elgar Publishing.
    17. Jeremy Valck & Steven Broekx & Inge Liekens & Joris Aertsens & Liesbet Vranken, 2017. "Testing the Influence of Substitute Sites in Nature Valuation by Using Spatial Discounting Factors," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(1), pages 17-43, January.
    18. Emily Lancsar & Peter Burge, 2014. "Choice modelling research in health economics," Chapters,in: Handbook of Choice Modelling, chapter 28, pages 675-687 Edward Elgar Publishing.

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