IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v22y2013i3p272-288.html
   My bibliography  Save this article

Testing Procedural Invariance In The Context Of Health

Author

Listed:
  • Adam Oliver

Abstract

Violations of procedural invariance, epitomised by ‘classic’ preference reversals, have been observed for more than 40 years, and yet the study of this phenomenon in health remains nascent. This is an oversight because such violations pose a challenge to health economics, where choice and valuation methodologies often are used interchangeably. This article reports two experiments that aim to test for preference reversals over outcomes defined by health status, using both ‘open’ and ‘assisted’ valuation procedures. Although systematic preference reversals in the direction generally reported in the literature were not observed, the rates of non‐systematic reversal were substantial, measuring 35–40%. By analysing the respondents’ explanations for their answers, it is clear that many of them used heuristics to answer the questions, and they may have good reasons to do so, which undermines the notion that preferences are always fixed and stable. These results, and others like it, pose a challenge to those who unquestioningly assume procedural invariance and maintain that population preferences should be used to inform health policy. Copyright © 2012 John Wiley & Sons, Ltd.

Suggested Citation

  • Adam Oliver, 2013. "Testing Procedural Invariance In The Context Of Health," Health Economics, John Wiley & Sons, Ltd., vol. 22(3), pages 272-288, March.
  • Handle: RePEc:wly:hlthec:v:22:y:2013:i:3:p:272-288
    DOI: 10.1002/hec.2796
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.2796
    Download Restriction: no

    File URL: https://libkey.io/10.1002/hec.2796?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. Paul Dolan & Claire Gudex & Paul Kind & Alan Williams, 1995. "A social tariff for EuroQol: results from a UK general population survey," Working Papers 138chedp, Centre for Health Economics, University of York.
    2. Bostic, Raphael & Herrnstein, R. J. & Luce, R. Duncan, 1990. "The effect on the preference-reversal phenomenon of using choice indifferences," Journal of Economic Behavior & Organization, Elsevier, vol. 13(2), pages 193-212, March.
    3. Shackley, Phil & Donaldson, Cam, 2002. "Should we use willingness to pay to elicit community preferences for health care?: New evidence from using a 'marginal' approach," Journal of Health Economics, Elsevier, vol. 21(6), pages 971-991, November.
    4. Jan Abel Olsen, 1997. "Aiding priority setting in health care: is there a role for the contingent valuation method?," Health Economics, John Wiley & Sons, Ltd., vol. 6(6), pages 603-612, November.
    5. Gyldmark, Marlene & Morrison, Gwendolyn C., 2001. "Demand for health care in Denmark: results of a national sample survey using contingent valuation," Social Science & Medicine, Elsevier, vol. 53(8), pages 1023-1036, October.
    6. Han Bleichrodt & Jose Luis Pinto Prades, 2009. "New evidence of preference reversals in health utility measurement," Health Economics, John Wiley & Sons, Ltd., vol. 18(6), pages 713-726, June.
    7. Ian Bateman & Brett Day & Graham Loomes & Robert Sugden, 2007. "Can ranking techniques elicit robust values?," Journal of Risk and Uncertainty, Springer, vol. 34(1), pages 49-66, February.
    8. Oliver, Adam, 2006. "Further evidence of preference reversals: Choice, valuation and ranking over distributions of life expectancy," Journal of Health Economics, Elsevier, vol. 25(5), pages 803-820, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José Luis Pinto‐Prades & Fernando Ignacio Sánchez‐Martínez & José María Abellán‐Perpiñán & Jorge E. Martínez‐Pérez, 2018. "Reducing preference reversals: The role of preference imprecision and nontransparent methods," Health Economics, John Wiley & Sons, Ltd., vol. 27(8), pages 1230-1246, August.
    2. Afschin Gandjour & Dimitrios Kourouklis, 2020. "A survey analyzing assumptions for rational decision making in health care," Economics Bulletin, AccessEcon, vol. 40(1), pages 828-836.
    3. Oliver, Adam, 2013. "Testing the rate of preference reversal in personal and social decision-making," Journal of Health Economics, Elsevier, vol. 32(6), pages 1250-1257.
    4. Carlos Alós-Ferrer & Johannes Buckenmaier & Michele Garagnani, 2020. "Stochastic choice and preference reversals," ECON - Working Papers 370, Department of Economics - University of Zurich, revised Jul 2021.

    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. Oliver, Adam, 2013. "Testing the rate of preference reversal in personal and social decision-making," Journal of Health Economics, Elsevier, vol. 32(6), pages 1250-1257.
    2. Sebastian Neumann-Böhme & Stefan A. Lipman & Werner B. F. Brouwer & Arthur E. Attema, 2021. "Trust me; I know what I am doing investigating the effect of choice list elicitation and domain-relevant training on preference reversals in decision making for others," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(5), pages 679-697, July.
    3. Younjun Kim & Elizabeth Hoffman, 2018. "Pre‐Play Learning and the Preference Reversal Phenomenon," Southern Economic Journal, John Wiley & Sons, vol. 85(2), pages 599-615, October.
    4. Oliver, Adam, 2018. "Your money and your life: risk attitudes over gains and losses," LSE Research Online Documents on Economics 88583, London School of Economics and Political Science, LSE Library.
    5. Karine Lamiraud & Robert Oxoby & Cam Donaldson, 2016. "Incremental willingness to pay: a theoretical and empirical exposition," Theory and Decision, Springer, vol. 80(1), pages 101-123, January.
    6. Han Bleichrodt & Jose Luis Pinto Prades, 2009. "New evidence of preference reversals in health utility measurement," Health Economics, John Wiley & Sons, Ltd., vol. 18(6), pages 713-726, June.
    7. Adam Oliver, 2018. "Your money and your life: Risk attitudes over gains and losses," Journal of Risk and Uncertainty, Springer, vol. 57(1), pages 29-50, August.
    8. Carlos Alós-Ferrer & Johannes Buckenmaier & Michele Garagnani, 2020. "Stochastic choice and preference reversals," ECON - Working Papers 370, Department of Economics - University of Zurich, revised Jul 2021.
    9. George Houtven & Melonie Sullivan & Chris Dockins, 2008. "Cancer premiums and latency effects: A risk tradeoff approach for valuing reductions in fatal cancer risks," Journal of Risk and Uncertainty, Springer, vol. 36(2), pages 179-199, April.
    10. Oliver, Adam & Sunstein, Cass, 2019. "Does size matter? The Allais paradox and preference reversals with varying outcome magnitudes," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 45-60.
    11. Oliver, Adam & Sunstein, Cass, 2019. "Does size matter? The Allais paradox and preference reversals with varying outcome magnitudes," LSE Research Online Documents on Economics 91130, London School of Economics and Political Science, LSE Library.
    12. Shackley, Phil & Donaldson, Cam, 2002. "Should we use willingness to pay to elicit community preferences for health care?: New evidence from using a 'marginal' approach," Journal of Health Economics, Elsevier, vol. 21(6), pages 971-991, November.
    13. 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.
    14. Alene Sze Jing Yong & Yi Heng Lim & Mark Wing Loong Cheong & Ednin Hamzah & Siew Li Teoh, 2022. "Willingness-to-pay for cancer treatment and outcome: a systematic review," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(6), pages 1037-1057, August.
    15. Yaron Azrieli & Christopher P. Chambers & Paul J. Healy, 2020. "Incentives in experiments with objective lotteries," Experimental Economics, Springer;Economic Science Association, vol. 23(1), pages 1-29, March.
    16. Attema, Arthur E. & Brouwer, Werner B.F., 2012. "A test of independence of discounting from quality of life," Journal of Health Economics, Elsevier, vol. 31(1), pages 22-34.
    17. Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2013. "Salience and Consumer Choice," Journal of Political Economy, University of Chicago Press, vol. 121(5), pages 803-843.
    18. Cho, Young-Hee & Duncan Luce, R. & Truong, Lan, 2002. "Duplex decomposition and general segregation of lotteries of a gain and a loss: An empirical evaluation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 89(2), pages 1176-1193, November.
    19. Thomas Kourouxous & Thomas Bauer, 2019. "Violations of dominance in decision-making," Business Research, Springer;German Academic Association for Business Research, vol. 12(1), pages 209-239, April.
    20. Rinaldo Brau & Gianluca Fiorentini & Matteo Lippi Bruni & Anna Maria Pinna, 2004. "La disponibilità a pagare per la copertura del rischio di non autosufficienza: analisi econometrica e valutazioni di "policy"," Politica economica, Società editrice il Mulino, issue 3, pages 357-388.

    More about this item

    Statistics

    Access and download statistics

    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:wly:hlthec:v:22:y:2013:i:3:p:272-288. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    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.