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For better or worse? Investigating the validity of best–worst discrete choice experiments in health

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  • Nicolas Krucien
  • Jonathan Sicsic
  • Mandy Ryan

Abstract

Discrete choice experiments (DCEs) are frequently used in health economics to measure preferences for nonmarket goods. Best–worst discrete choice experiment (BWDCE) has been proposed as a variant of the traditional “pick the best” approach. BWDCE, where participants choose the best and worst options, is argued to generate more precise preference estimates because of the additional information collected. However, the validity of the approach relies on two necessary conditions: (a) best and worst decisions provide similar information about preferences and (b) asking individuals to answer more than one choice question per task does not reduce data quality. Whether these conditions hold in empirical applications remains under researched. This is the first study to compare participants' choices across three experimental conditions: (a) BEST choices only, (b) WORST choices only, and (c) BEST and WORST choices (BWDCE). We find responses to worst choices are noisier. Implied preferences from the best only and worst only choices are qualitatively different, leading to different WTP values. Responses to BWDCE tasks have lower consistency, and respondents are more likely to use simplifying decision heuristics. We urge caution in using BWDCE as an alternative to the traditional “pick the best” DCE.

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  • 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.
  • Handle: RePEc:wly:hlthec:v:28:y:2019:i:4:p:572-586
    DOI: 10.1002/hec.3869
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    2. Donald S. Kenkel & Sida Peng & Michael F. Pesko & Hua Wang, 2020. "Mostly harmless regulation? Electronic cigarettes, public policy, and consumer welfare," Health Economics, John Wiley & Sons, Ltd., vol. 29(11), pages 1364-1377, November.
    3. Ivan Sever & Miroslav Verbič & Eva Klaric Sever, 2020. "Estimating Attribute-Specific Willingness-to-Pay Values from a Health Care Contingent Valuation Study: A Best–Worst Choice Approach," Applied Health Economics and Health Policy, Springer, vol. 18(1), pages 97-107, February.
    4. Genie, Mesfin G. & Ryan, Mandy & Krucien, Nicolas, 2021. "To pay or not to pay? Cost information processing in the valuation of publicly funded healthcare," Social Science & Medicine, Elsevier, vol. 276(C).
    5. Donna Rowen & Oliver Rivero-Arias & Nancy Devlin & Julie Ratcliffe, 2020. "Review of Valuation Methods of Preference-Based Measures of Health for Economic Evaluation in Child and Adolescent Populations: Where are We Now and Where are We Going?," PharmacoEconomics, Springer, vol. 38(4), pages 325-340, April.
    6. Samare P. I. Huls & Emily Lancsar & Bas Donkers & Jemimah Ride, 2022. "Two for the price of one: If moving beyond traditional single‐best discrete choice experiments, should we use best‐worst, best‐best or ranking for preference elicitation?," Health Economics, John Wiley & Sons, Ltd., vol. 31(12), pages 2630-2647, December.

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