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Measuring willingness‐to‐pay for risk reduction: an application of conjoint analysis
Author(s) -
Telser Harry,
Zweifel Peter
Publication year - 2002
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.653
Subject(s) - willingness to pay , conjoint analysis , product (mathematics) , actuarial science , reduction (mathematics) , health insurance , economics , business , health care , microeconomics , geometry , mathematics , preference , economic growth
This study applies conjoint analysis (CA) to estimate the marginal willingness‐to‐pay (MWTP) of elderly individuals for a reduction of the risk of fracture of the femur. The good in question is a hypothetical hip protector which lowers the risk of a fracture by different amounts. Other attributes are ease of handling, wearing comfort, and out‐of‐pocket cost, which are traded off against risk reduction. In 500 face‐to‐face interviews, pensioners stated whether or not they would buy the product. Results suggest that MWTP for wearing comfort exceeds that for risk reduction. Indeed, willingness‐to‐pay for the product as a whole is negative, indicating that it should not be included as a mandatory benefit in health insurance. Copyright © 2002 John Wiley & Sons, Ltd.