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Application of Multi-Attribute Utility Theory to Measure Social Preferences for Health States

Author

Listed:
  • George W. Torrance

    (McMaster University, Hamilton, Ontario, Canada)

  • Michael H. Boyle

    (McMaster University, Hamilton, Ontario, Canada)

  • Sargent P. Horwood

    (McMaster University, Hamilton, Ontario, Canada)

Abstract

A four-attribute health state classification system designed to uniquely categorize the health status of all individuals two years of age and over is presented. A social preference function defined over the health state classification system is required. Standard multi-attribute utility theory is investigated for the task, problems are identified and modifications to the standard method are proposed. The modified method is field tested in a survey research project involving 112 home interviews. Results are presented and discussed in detail for both the social preference function and the performance of the modified method. A recommended social preference function is presented, complete with a range of uncertainty. The modified method is found to be applicable to the task—no insurmountable difficulties are encountered. Recommendations are presented, based on our experience, for other investigators who may be interested in reapplying the method in other studies.

Suggested Citation

  • George W. Torrance & Michael H. Boyle & Sargent P. Horwood, 1982. "Application of Multi-Attribute Utility Theory to Measure Social Preferences for Health States," Operations Research, INFORMS, vol. 30(6), pages 1043-1069, December.
    • Handle: RePEc:inm:oropre:v:30:y:1982:i:6:p:1043-1069
    DOI: 10.1287/opre.30.6.1043
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