Testing for consistency in willingness to pay experiments (original) (raw)
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Applied Health Economics and Health Policy, 2018
Background The contingent valuation (CV) method is an alternative approach to typical health economic methods for valuing interventions that have both health and non-health outcomes. Fertility treatment, such as in vitro fertilisation (IVF), fall into this category because of the significant non-health outcomes associated with having children. Aim To estimate the general population's willingness to pay (WTP) for one cycle of IVF and one year of IVF treatment, and to test the reliability and validity of a CV instrument. Methods Three online CV surveys were administered to a total of 1870 participants from the Australian general population using an ex-post perspective, that is, they assumed they were infertile and needed IVF to conceive a child.
Willingness to accept versus willingness to pay in a discrete choice experiment
Value in health : the journal of the International Society for Pharmacoeconomics and Outcomes Research, 2008
Our main objective was to compare willingness to accept (WTA) and willingness to pay (WTP) in a discrete choice experiment on hearing aid provision. Additionally, income effect and endowment effect were explored as possible explanations for the disparity between WTA and WTP, and the impact of using a WTA and/or WTP format to elicit monetary valuations on the net benefit of the new organization of hearing aid provision was examined. Choice sets were based on five attributes: performer of the initial assessment; accuracy of the initial assessment; duration of the pathway; follow-up at the ear, nose, and throat specialist; and costs. Persons with hearing complaints randomly received a WTP (costs defined as extra payment) or WTA (costs defined as discount) version of the experiment. In the versions, except for the cost attribute, all choice sets were equal. The cost coefficient was statistically significantly higher in the WTP format. Marginal WTA was statistically significantly higher ...
Experiments on the difference between willingness to pay and willingness to …
Land Economics, 1993
ABSTRACT. "Willingness to pay" (WTP) and "willingness to accept" (WTA) measures of wel- fare change have been found to differ substan- tially when elicitedfrom surveys or experimental market transactions. Conventional economic theory suggests that the difference between ...
Efficient design for willingness to pay in choice experiments: evidence from the field
2009
Efficient experimental designs offer the potential to reduce confidence intervals for parameters of interest in choice models, or to reduce required sample sizes. C-efficiency recognizes the salience of willingness to pay estimates rather than utility function parameters. This study reports on a choice model application that incorporated updated statistical designs based on initial responses in order to maximize C-efficiency. The
An alternative approach for eliciting willingness-to-pay: A randomized Internet trial
2007
Open-ended methods that elicit willingness-to-pay (WTP) in terms of absolute dollars often result in high rates of questionable and highly skewed responses, insensitivity to changes in health state, and raise an ethical issue related to its association with personal income. We conducted a 2x2 randomized trial over the Internet to test 4 WTP formats: 1) WTP in dollars; 2) WTP as a percentage of financial resources; 3) WTP in terms of monthly payments; and 4) WTP as a single lump-sum amount. WTP as a percentage of financial resources generated fewer questionable values, had better distribution properties, greater sensitivity to severity of health states, and was not associated with income. WTP elicited on a monthly basis also showed promise.
Spanish Journal of Agricultural Research, 2015
Choosing a valid procedure to measure willingness to pay (WTP) is crucial for designating optimum price policies or for evaluating the demand for new products. This study compares two methods for obtaining WTP in a food context: a random nth price auction and an open-ended contingent valuation (CV) question. Participants were regular salad tomato buyers of Alicante and they were randomly assigned to one of the two treatments. The products about which they would show their WTP were traditional tomato varieties. Both treatments were divided into three stages: in the first stage the only available information was a reference price for the tomatoes. In stages 2 and 3 we revealed the local origin and the organic grown of the tomatoes respectively. Our results show that in the auction the percentage of participants willing to pay the same or more than the reference price was between 20 and 30%. In the CV method this percentage was between 40 and 65%. The mean WTP in the auction, consideri...
Preference measurement in health using experiments
Central European Journal of Operations Research, 2021
This contribution has three objectives. First, it seeks to justify the use of the economic criterion, “Provision of health care in accordance with the preferences of current and potential patients” for guiding decisions concerning the adoption of costly innovation in health. Next, it proposes the measurement of these preferences in the guise of willingness to pay (WTP) values through Discrete Choice Experiments (DCEs). Third, it purports to examine two popular arguments against accepting lay persons´ preferences, viz. that they are unwilling or unable to express preferences with regard to health and health care, and that their preferences are unstable, depending on the current state of health. Both of these arguments are refuted by the findings of four DCEs designed to measure WTP for attributes of health insurance and of the treatment of diabetes, respectively [Zweifel in J Regul Econ 29(3): 319–332, 2006; MacNeil Vrooman and Zweifel in Eur J Health Econ 12(1): 87–95, 2011; Sennhau...
Applied Economics Letters, 2002
This study reports the results of experiments designed to elicit, within a controlled laboratory environment, hypothetical and real willingness to pay for an environmental educational program using the open-ended question format. By maintaining both the good and the question format constant across the treatments, our experiments overcome the shortcomings of recently reported experimental results, providing a clean test for hypothetical bias in open-ended valuations. Having found a statistically significant difference between the hypothetical and real values, we turn into the question of whether hypothetical valuations may nonetheless provide useful statistical information concerning individuals' real valuations. This question, which is perhaps the key question in the current state of the debate surrounding the contingent valuation method, is answered affirmatively in this study.
Health Economics, 2011
To compare direct and indirect willingness to pay (WTP) elicitation methods in terms of feasibility, reliability, and comparability. The application is obstetrics, where always both a mother's and a child's health are at stake. An open-ended contingent valuation method (CVM) as a direct WTP elicitation method, and the discrete choice experiment (DCE) as an indirect WTP elicitation method. Vignettes to be valued were based on clinical patient data. Participants were 88 laypersons who received their questionnaires by postal mail. The DCE task was completed faster (p=0.006) and was regarded easier (p<0.001) than the CVM task. Test-retest for CVM was substantial (ICC=0.76), and for DCE moderate (k=0.49). Female sex (p<0.001), age≥50 years (p=0.013), higher income (p<0.001), and higher education (p<0.001) were associated with higher WTP. Correlation between CVM and DCE was 0.79 (Kendall's Tau-b; p<0.001). The implied WTP as derived with DCE was between 2.3 and 10.2 times higher than with CVM. The relationship between the WTPs was linear. It is yet unclear what lies behind the numbers of DCE. DCE has no methodological benefits over the conventional CVM when eliciting WTP for complex health outcomes in obstetrics.