Revising a priority list based on cost-effectiveness: the role of the prominence effect and distorted utility judgments.
Journal Article (Journal Article)
Background
People sometimes object to the results of cost-effectiveness analysis when the analysis produces a ranking of options based on both cost and benefit. We suggest 2 new reasons for these objections: the prominence effect, in which people attend mostly to a more prominent attrbute (benefit as opposed to cost), and distortion of utility judgments.Method
We simulated the production of a cost-effectiveness ranking list in 3 experiments using questionnaires on the World Wide Web. Subjects rated the utility of 16 health benefits using either rating scale or person trade-off elicitation methods. In some experiments, subjects were asked to rate the utility of the health benefits with attention also to the cost of achieving the benefits. In all experiments, at the end, subjects were shown a priority list based on their own utility judgments and were asked whether they wanted to move any of the health benefits up or down the list.Results
In all experiments, subjects wanted to give higher priority to treatments with higher benefit, even when they also had higher cost. They thus wanted to give less weight to high cost (which would, by itself, lead to lower ranking) and more weight to benefit than the weight implied by their own prior judgments. The desire for revision was reduced when subjects made their utility judgments after indicating whether the utility was above or below the midpoint of the scale (a manipulation previously found to reduce distortion).Conclusion
The desire to change cost-effectiveness rankings is in part a preference reversal phenomenon that occurs because people attend mainly to the benefit of health interventions as opposed to cost, when they examine the ranking. People should be wary of tinkering with priority lists by examining the lists themselves.Full Text
Duke Authors
Cited Authors
- Baron, J; Ubel, PA
Published Date
- July 2001
Published In
Volume / Issue
- 21 / 4
Start / End Page
- 278 - 287
PubMed ID
- 11475384
Electronic International Standard Serial Number (EISSN)
- 1552-681X
International Standard Serial Number (ISSN)
- 0272-989X
Digital Object Identifier (DOI)
- 10.1177/0272989x0102100403
Language
- eng