✦ LIBER ✦

Willingness to pay for reductions in health risks when probabilities are distorted

✍ Scribed by Han Bleichrodt; Louis Eeckhoudt

Publisher: John Wiley and Sons
Year: 2006
Tongue: English
Weight: 92 KB
Volume: 15
Category: Article
ISSN: 1057-9230
DOI: 10.1002/hec.1073

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

We study the willingness to pay for reductions in health risks when people do not evaluate probabilities linearly, as is commonly assumed in elicitations of willingness to pay, but weight probabilities, as is commonly observed in empirical studies of decision under risk. We show that for the levels of baseline risk typically considered, probability weighting strongly affects willingness to pay estimates and may lead to unstable monetary valuations of health. Copyright © 2005 John Wiley & Sons, Ltd.

📜 SIMILAR VOLUMES

Willingness to pay for health risk reduc

Willingness to pay for health risk reduction in the context of altruism

✍ Jorge E. Araña; Carmelo J. León 📂 Article 📅 2002 🏛 John Wiley and Sons 🌐 English ⚖ 173 KB

## Abstract This paper presents results on the valuation of health risks in the presence of altruism. The contingent valuation method is utilised in a split sample experiment for estimating the private and public values in reducing the risk of flu. Data modelling for the dichotomous choice method f