Measuring willingness-to-pay for risk reduction: an application of conjoint analysis

Health Econ. 2002 Mar;11(2):129-39. doi: 10.1002/hec.653.

Abstract

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.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Accidental Falls
  • Aged
  • Choice Behavior*
  • Consumer Behavior / economics*
  • Cost-Benefit Analysis*
  • Female
  • Femoral Neck Fractures / prevention & control*
  • Financing, Personal*
  • Health Services Needs and Demand
  • Humans
  • Interviews as Topic
  • Male
  • Models, Econometric*
  • Protective Devices / economics*
  • Protective Devices / statistics & numerical data*
  • Quality-Adjusted Life Years*
  • Risk