Validity of Discrete-Choice Experiments - Evidence for Health Risk Reduction

Harry Telser () and Peter Zweifel ()
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Harry Telser: Socioeconomic Institute, University of Zurich
Peter Zweifel: Socioeconomic Institute, University of Zurich

No 313, SOI - Working Papers from Socioeconomic Institute - University of Zurich

Abstract: There is growing interest in discrete-choice experiments (DCE) as a method to elicit consumers' preferences in the health care sector. Increasingly this method is used to determine willingness-to-pay (WTP) for health-related goods. However, its external validity in the health care domain has not been investigated until today. This paper examines the external validity of DCE concerning the reduction of a health risk. Convergent validity is examined by comparing the value of a statistical life with other preference elicitation techniques, such as revealed preference. Criterion validity is shown by comparing WTP values derived from stated choices in the experiment with those derived from actual choices made by the same individuals. Both tests provide strong evidence in favor of external validity of the DCE method.

Keywords: Choice Experiments (DCE); Willingness-to-Pay (WTP); Validity; Risk Reduction; Hip Protectors (search for similar items in EconPapers)
JEL-codes: C25 C52 D12 I18 I19 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2003-10, Revised 2005-02
New Economics Papers: this item is included in nep-dcm and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Applied Economics 39(1), 69-78, 2007

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https://www.zora.uzh.ch/id/eprint/52185/1/wp0313.pdf Revised version, 2005 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:soz:wpaper:0313

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