IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v44y1998i6p839-849.html
   My bibliography  Save this article

The Zero-Condition: A Simplifying Assumption in QALY Measurement and Multiattribute Utility

Author

Listed:
  • John M. Miyamoto

    (Department of Psychology, University of Washington, Seattle, Washington 98195)

  • Peter P. Wakker

    (Department of Medical Decision Making, LUMC 1 K6-R, Leiden University Medical Center, P.O. Box 9600, Leiden 2300 RC, The Netherlands)

  • Han Bleichrodt

    (iMTA, Erasmus University, P.O. Box 1738, Rotterdam, 3000 DR, The Netherlands)

  • Hans J. M. Peters

    (Department of Quantitative Economics, Maastricht University, P.O. Box 616, Maastricht, 6200 MD, The Netherlands)

Abstract

This paper studies the implications of the "zero-condition" for multiattribute utility theory. The zero-condition simplifies the measurement and derivation of the Quality Adjusted Life Year (QALY) measure commonly used in medical decision analysis. For general multiattribute utility theory, no simple condition has heretofore been found to characterize multiplicatively decomposable forms. When the zero-condition is satisfied, however, such a simple condition, "standard gamble invariance," becomes available.

Suggested Citation

  • John M. Miyamoto & Peter P. Wakker & Han Bleichrodt & Hans J. M. Peters, 1998. "The Zero-Condition: A Simplifying Assumption in QALY Measurement and Multiattribute Utility," Management Science, INFORMS, vol. 44(6), pages 839-849, June.
    • Handle: RePEc:inm:ormnsc:v:44:y:1998:i:6:p:839-849
    DOI: 10.1287/mnsc.44.6.839
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.44.6.839
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.44.6.839?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fishburn, Peter C & Rubinstein, Ariel, 1982. "Time Preference," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(3), pages 677-694, October.
    2. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    3. Loomes, Graham & McKenzie, Lynda, 1989. "The use of QALYs in health care decision making," Social Science & Medicine, Elsevier, vol. 28(4), pages 299-308, January.
    4. Peter C. Fishburn, 1965. "Independence in Utility Theory with Whole Product Sets," Operations Research, INFORMS, vol. 13(1), pages 28-45, February.
    5. Imran S. Currim & Rakesh K. Sarin, 1989. "Prospect Versus Utility," Management Science, INFORMS, vol. 35(1), pages 22-41, January.
    6. Bleichrodt, Han & Wakker, Peter & Johannesson, Magnus, 1997. "Characterizing QALYs by Risk Neutrality," Journal of Risk and Uncertainty, Springer, vol. 15(2), pages 107-114, November.
    7. Joseph S. Pliskin & Donald S. Shepard & Milton C. Weinstein, 1980. "Utility Functions for Life Years and Health Status," Operations Research, INFORMS, vol. 28(1), pages 206-224, February.
    8. Bernhard von Stengel, 1993. "Closure Properties of Independence Concepts for Continuous Utilities," Mathematics of Operations Research, INFORMS, vol. 18(2), pages 346-389, May.
    9. Peter C. Fishburn & Ralph L. Keeney, 1975. "Generalized Utility Independence and Some Implications," Operations Research, INFORMS, vol. 23(5), pages 928-940, October.
    10. Magnus Johannesson & Joseph S. Pliskin & Milton C. Weinstein, 1994. "A Note on QALYs, Time Tradeoff, and Discounting," Medical Decision Making, , vol. 14(2), pages 188-193, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Mª Abellán & José Luis Pinto & Ildefonso Méndez & Xabier Badía, 2004. "A test of the predictive validity of non-linear QALY models using time trade-off utilities," Economics Working Papers 741, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Ana M. Guerrero & Carmen Herrero Blanco, 1999. "-Time Preference And Individual Health Profiles," Working Papers. Serie AD 1999-20, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. José‐María Abellán‐Perpiñán & José‐Luis Pinto‐Prades & Ildefonso Méndez‐Martínez & Xabier Badía‐Llach, 2006. "Towards a better QALY model," Health Economics, John Wiley & Sons, Ltd., vol. 15(7), pages 665-676, July.
    4. Hougaard, Jens Leth & Moreno-Ternero, Juan D. & Østerdal, Lars Peter, 2013. "A new axiomatic approach to the evaluation of population health," Journal of Health Economics, Elsevier, vol. 32(3), pages 515-523.
    5. Kevin Haninger & James K. Hammitt, 2011. "Diminishing Willingness to Pay per Quality‐Adjusted Life Year: Valuing Acute Foodborne Illness," Risk Analysis, John Wiley & Sons, vol. 31(9), pages 1363-1380, September.
    6. Arthur E. Attema & Marieke Krol & Job Exel & Werner B. F. Brouwer, 2018. "New findings from the time trade-off for income approach to elicit willingness to pay for a quality adjusted life year," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(2), pages 277-291, March.
    7. James K. Hammitt, 2002. "QALYs Versus WTP," Risk Analysis, John Wiley & Sons, vol. 22(5), pages 985-1001, October.
    8. Andrea C. Hupman & Jay Simon, 2023. "The Legacy of Peter Fishburn: Foundational Work and Lasting Impact," Decision Analysis, INFORMS, vol. 20(1), pages 1-15, March.
    9. Han Bleichrodt & Jose Luis Pinto, 2000. "A Parameter-Free Elicitation of the Probability Weighting Function in Medical Decision Analysis," Management Science, INFORMS, vol. 46(11), pages 1485-1496, November.
    10. Marjon Pol & Larissa Roux, 2005. "Time preference bias in time trade-off," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 6(2), pages 107-111, June.
    11. Charles M. Harvey & Lars Peter Østerdal, 2010. "Cardinal Scales for Health Evaluation," Decision Analysis, INFORMS, vol. 7(3), pages 256-281, September.
    12. Lisa Prosser & James Hammitt & Ron Keren, 2007. "Measuring Health Preferences for Use in Cost-Utility and Cost-Benefit Analyses of Interventions in Children," PharmacoEconomics, Springer, vol. 25(9), pages 713-726, September.
    13. Attema, Arthur E. & l’Haridon, Olivier & van de Kuilen, Gijs, 2019. "Measuring multivariate risk preferences in the health domain," Journal of Health Economics, Elsevier, vol. 64(C), pages 15-24.
    14. Bleichrodt, Han, 1997. "Health utility indices and equity considerations," Journal of Health Economics, Elsevier, vol. 16(1), pages 65-91, February.
    15. James S. Dyer & James E. Smith, 2021. "Innovations in the Science and Practice of Decision Analysis: The Role of Management Science," Management Science, INFORMS, vol. 67(9), pages 5364-5378, September.
    16. Bleichrodt, Han, 1995. "QALYs and HYEs: Under what conditions are they equivalent?," Journal of Health Economics, Elsevier, vol. 14(1), pages 17-37, May.
    17. Han Bleichrodt & John Miyamoto, 2003. "A Characterization of Quality-Adjusted Life-Years Under Cumulative Prospect Theory," Mathematics of Operations Research, INFORMS, vol. 28(1), pages 181-193, February.
    18. James K. Hammitt & Eric S. Belsky & Jonathan I. Levy & John D. Graham, 1999. "Residential Building Codes, Affordability, and Health Protection: A Risk‐Tradeoff Approach," Risk Analysis, John Wiley & Sons, vol. 19(6), pages 1037-1058, December.
    19. Kristian Schultz Hansen & Lars Peter Østerdal, 2006. "Models of Quality‐Adjusted Life Years when Health Varies Over Time: Survey and Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 229-255, April.
    20. Doctor, Jason N. & Bleichrodt, Han & Miyamoto, John & Temkin, Nancy R. & Dikmen, Sureyya, 2004. "A new and more robust test of QALYs," Journal of Health Economics, Elsevier, vol. 23(2), pages 353-367, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:44:y:1998:i:6:p:839-849. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.