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Patients' Perceptions and Treatment Effectiveness

Author

Listed:
  • Sean Murphy
  • Robert Rosenman
  • Jon Yoder
  • Dan Firesner

    (School of Economic Sciences, Washington State University)

Abstract
An extensive literature relating patients’ expectations to treatment outcomes has not addressed the determinants of these expectations. We argue that treatment history is part of a reference point that influences patients’ expectations of how effective further treatment might be, thus influencing whether to proceed with additional treatment or not. We hypothesize that those patients with unsuccessful prior treatments have diminished expected improvement from subsequent treatments. Prospect theory provides a theoretical foundation for reference frame effects, and the model is tested with data on patients diagnosed with idiopathic intracranial hypertension. Our results support the reference frame hypothesis.

Suggested Citation

  • Sean Murphy & Robert Rosenman & Jon Yoder & Dan Firesner, 2008. "Patients' Perceptions and Treatment Effectiveness," Working Papers 2008-19, School of Economic Sciences, Washington State University.
    • Handle: RePEc:wsu:wpaper:rosenman-5
    as

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    File URL: http://faculty.ses.wsu.edu/WorkingPapers/Rosenman/WP_2008_19_IIH-PT.pdf
    File Function: First version, 2008
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    References listed on IDEAS

    as
    1. Jonathan R. Treadwell & Leslie A. Lenert, 1999. "Health Values and Prospect Theory," Medical Decision Making, , vol. 19(3), pages 344-352, August.
    2. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
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    4. Diana Stratmann-Schoene & Thomas Klose, 2001. "Health Values and Prospect Theory," Medical Decision Making, , vol. 21(1), pages 57-59, February.
    5. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    6. Hausman, J. A. & Abrevaya, Jason & Scott-Morton, F. M., 1998. "Misclassification of the dependent variable in a discrete-response setting," Journal of Econometrics, Elsevier, vol. 87(2), pages 239-269, September.
    7. repec:adr:anecst:y:1999:i:55-56:p:09 is not listed on IDEAS
    8. Han, Aaron K., 1987. "Non-parametric analysis of a generalized regression model : The maximum rank correlation estimator," Journal of Econometrics, Elsevier, vol. 35(2-3), pages 303-316, July.
    9. Jason Abrevaya & Jerry A. Hausman, 1999. "Semiparametric Estimation with Mismeasured Dependent Variables: An Application to Duration Models for Unemployment Spells," Annals of Economics and Statistics, GENES, issue 55-56, pages 243-275.
    10. Wakker, Peter & Tversky, Amos, 1993. "An Axiomatization of Cumulative Prospect Theory," Journal of Risk and Uncertainty, Springer, vol. 7(2), pages 147-175, October.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Sean M. Murphy & Dan L. Friesner & Robert Rosenman, 2012. "Patients' perceptions and treatment effectiveness: a reassessment using generalized maximum entropy," Applied Economics Letters, Taylor & Francis Journals, vol. 19(13), pages 1243-1248, September.

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    More about this item

    Keywords

    Prospect Theory; Treatment Outcomes; Treatment History; Misclassification; Monotone Rank Estimator;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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