Prospect theory in the health domain: A quantitative assessment

It is well-known that expected utility (EU) has empirical deficiencies. Cumulative prospect theory (CPT) has developed as an alternative with more descriptive validity. However, CPT's full function had not yet been quantified in the health domain. This paper is therefore the first to simultaneously measure utility of life duration, probability weighting, and loss aversion in this domain.

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Year of publication:	2013
Authors:	Attema, Arthur E. ; Brouwer, Werner B.F. ; l’Haridon, Olivier
Published in:	Journal of Health Economics. - Elsevier, ISSN 0167-6296. - Vol. 32.2013, 6, p. 1057-1065
Publisher:	Elsevier
Subject:	Loss aversion \| Cumulative prospect theory \| QALY model \| Utility of life duration

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Type of publication:	Article
Classification:	B41 - Economic Methodology ; D03 - Behavioral Economics; Underlying Principles ; I10 - Health. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010870780