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Testing the predective validity of the time trade-off and the Stardard Gamble




This paper tests the consistency of health utility measurements with individual preferences. We compare three methods, the time trade-off, the standard gamble and a version of the standard gamble that corrects for the deviations from expected utility modelled by prospect theory. Individual preferences are measured both through a ranking task and through a choice task. In decisions involving no risk the time trade-off is most consistent with people’s preferences with the standard gamble a close second. In decisions involving risk the corrected standard gamble is most consistent with people’s preferences. Our data do not support the common assumption in health economics that utility is transferable across decision contexts.

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  • Jose María Abellán-Perpiñán & Han Bleichrodt & Jose Luis Pinto-Prades, 2007. "Testing the predective validity of the time trade-off and the Stardard Gamble," Economic Working Papers at Centro de Estudios Andaluces E2007/14, Centro de Estudios Andaluces.
  • Handle: RePEc:cea:doctra:e2007_14

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    Cited by:

    1. Attema, Arthur E. & Brouwer, Werner B.F., 2009. "The correction of TTO-scores for utility curvature using a risk-free utility elicitation method," Journal of Health Economics, Elsevier, vol. 28(1), pages 234-243, January.

    More about this item


    Health utility measurement; QALYs; stardard gamble; time trade-off; prospect theory.;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

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