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The Contingent Valuation Method in Health Care: An Economic Evaluation of Alzheimer's Disease

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  • Dario Bonato
  • Sandra Nocera
  • Harry Telser

Abstract

The present work focuses on the choice of the elicitation technique within a contingent valuation (CV) framework. We simultaneously apply three different elicitation techniques to elicit willingness-to-pay (WTP) values for different programs against Alzheimer's disease. The WTP values are elicited by using the dichotomous choice approach, which is the standard procedure. However, giving respondents only a yes/no response alternative seems to result in overestimated WTP values. Therefore, we additionally apply the dissonance-minimizing format which screens respondents for their preferences and thus avoids possible yea-saying and protest answers against the payment vehicle. In addition, a modified version of the payment card is used, allowing respondents to express a level of voting certainty and to make less of a commitment. With our findings we modify existing guidelines on how to execute a CV study. We show that the Swiss population favors highly a program which improves the situation of informal caregivers and that a well-designed CV method is a suitable instrument for helping decision makers in the health care sector.

Suggested Citation

  • Dario Bonato & Sandra Nocera & Harry Telser, 2001. "The Contingent Valuation Method in Health Care: An Economic Evaluation of Alzheimer's Disease," Diskussionsschriften dp0101, Universitaet Bern, Departement Volkswirtschaft.
    • Handle: RePEc:ube:dpvwib:dp0101
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    References listed on IDEAS

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    1. Welsh, Michael P. & Poe, Gregory L., 1998. "Elicitation Effects in Contingent Valuation: Comparisons to a Multiple Bounded Discrete Choice Approach," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 170-185, September.
    2. Smith, V. Kerry, 1992. "Arbitrary values, good causes, and premature verdicts," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 71-89, January.
    3. Kip Viscusi, W. & Magat, Wesley A. & Huber, Joel, 1991. "Pricing environmental health risks: survey assessments of risk-risk and risk-dollar trade-offs for chronic bronchitis," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 32-51, July.
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    Cited by:

    1. Zhongmin, Xu & Guodong, Cheng & Zhiqiang, Zhang & Zhiyong, Su & Loomis, John, 2003. "Applying contingent valuation in China to measure the total economic value of restoring ecosystem services in Ejina region," Ecological Economics, Elsevier, vol. 44(2-3), pages 345-358, March.
    2. Hao Li & Xiaohui Yang & Xiao Zhang & Yuyan Liu & Kebin Zhang, 2018. "Estimation of Rural Households’ Willingness to Accept Two PES Programs and Their Service Valuation in the Miyun Reservoir Catchment, China," Sustainability, MDPI, vol. 10(1), pages 1-19, January.
    3. Emma J. Frew & David K. Whynes & Jane L. Wolstenholme, 2003. "Eliciting Willingness to Pay: Comparing Closed-Ended with Open-Ended and Payment Scale Formats," Medical Decision Making, , vol. 23(2), pages 150-159, March.

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    More about this item

    Keywords

    contingent valuation (CV) method; willingness-to-pay (WTP); Alzheimer's disease (AD); elicitation technique;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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