Measuring willingness-to-pay for risk reduction: an application of conjoint analysis.
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.
Telser
Harry
H
Socioeconomic Institute, University of Zurich, Switzerland. telser@soi.unizh.ch
Zweifel
Peter
P
D000058:Accidental Falls; D000368:Aged; D002755:Choice Behavior; D003258:Consumer Behavior / Q000191:economics*; D003362:Cost-Benefit Analysis; D005260:Female; D005265:Femoral Neck Fractures / Q000517:prevention & control*; D005382:Financing, Personal; D006301:Health Services Needs and Demand; D006801:Humans; D007407:Interviews as Topic; D008297:Male; D017059:Models, Econometric; D011482:Protective Devices / Q000191:economics* / Q000706:statistics & numerical data*; D019057:Quality-Adjusted Life Years; D012306:Risk