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Testing for an experience endowment effect in health care

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  • Mandy Ryan
  • Cristina Ubach

Abstract

Preferences have been shown to be influenced by initial endowments of wealth in the valuation literature. This paper tested for the influence of initial endowments of experience on preferences, using a discrete choice experiment. The experiment was carried out within the context of a randomized controlled trial evaluating the introduction of a new repeat prescribing system. The 'intervention group' experienced the proposed new system and the 'control group' the existing system. Evidence of an experience endowment effect was found, with only the 'intervention group' valuing attributes of the new repeat prescribing system. The implications of these results for economic evaluations alongside randomized controlled trials are considered.

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  • Mandy Ryan & Cristina Ubach, 2003. "Testing for an experience endowment effect in health care," Applied Economics Letters, Taylor & Francis Journals, vol. 10(7), pages 407-410.
    • Handle: RePEc:taf:apeclt:v:10:y:2003:i:7:p:407-410
    DOI: 10.1080/1350485032000056864
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    References listed on IDEAS

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    Cited by:

    1. David J. Mott & Laura Ternent & Luke Vale, 2023. "Do preferences differ based on respondent experience of a health issue and its treatment? A case study using a public health intervention," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(3), pages 413-423, April.
    2. Neuman, Einat & Neuman, Shoshana, 2006. "Explorations of the Effect of Experience on Preferences: Two Health-Care Case Studies," IZA Discussion Papers 2028, Institute of Labor Economics (IZA).
    3. Alessandro Mengoni & Chiara Seghieri & Sabina Nuti, 2013. "The application of discrete choice experiments in health economics: a systematic review of the literature," Working Papers 201301, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    4. Domenico Colucci & Chiara Franco & Vincenzo Valori, 2021. "Endowment effects at different time scenarios: the role of ownership and possession," Discussion Papers 2021/279, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    5. Hensher, David A. & Ho, Chinh Q., 2016. "Experience conditioning in commuter modal choice modelling – Does it make a difference?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 164-176.
    6. Neuman, Tzahi & Neuman, Einat & Neuman, Shoshana, 2010. "Explorations of the effect of experience on preferences for a health-care service," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(3), pages 407-419, June.

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