In recent years the interest in multivariate and higher-order risk preferences has increased noticeably. A growing body of literature has demonstrated both the relevance and the impact of these preferences in several domains, although for health the empirical evidence is lacking. In this study...

It is well-known that expected utility (EU) has empirical deficiencies. Prospect theory (PT) has developed as an alternative with more descriptive validity. However, PT’s full function had not yet been quantified in the health domain. This paper is the first to simultaneously measure utility...

This paper is the first to apply prospect theory to societal health-related decision making. In particular, we allow for utility curvature, equity weighting, sign-dependence, and loss aversion in choices concerning quality of life of other people. We find substantial inequity aversion, both for...