Hypothetical bias, cheap talk, and stated willingness to pay for health care.

Journal Article

Subjects with rheumatoid arthritis (RA) enrolled in an online panel were asked to evaluate pairs of treatment alternatives with different attributes. Half of the sample saw a cheap-talk text. Preference parameters were estimated using random-parameters logit models to account for unobserved taste heterogeneity. The models also were estimated in willingness-to-pay (WTP) space instead of conventional utility space. Cheap talk not only affected the coefficient on the cost attribute, but also preferences for other attributes. WTP estimates were generally lower in cheap talk sample, except for the most important attribute and a 2-level attribute. Subjects who were presented with cheap talk discriminated between the adjoning attribute levels better than the subjects in the control sample.

Full Text

Duke Authors

Cited Authors

  • Ozdemir, S; Johnson, FR; Hauber, AB

Published Date

  • July 2009

Published In

Volume / Issue

  • 28 / 4

Start / End Page

  • 894 - 901

PubMed ID

  • 19464743

Electronic International Standard Serial Number (EISSN)

  • 1879-1646

International Standard Serial Number (ISSN)

  • 0167-6296

Digital Object Identifier (DOI)

  • 10.1016/j.jhealeco.2009.04.004

Language

  • eng