Measuring Willingness-To-Pay for Risk Reduction: An Application of Conjoint Analysis

Harry Telser () and Peter Zweifel ()
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Harry Telser: Socioeconomic Institute, University of Zurich
Peter Zweifel: Socioeconomic Institute, University of Zurich

No 3, SOI - Working Papers from Socioeconomic Institute - University of Zurich

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 are hypothetical hip protectors which lower the risk of a fracture by different amounts. Other attributes are ease of handling, wearing comfort, and out-of-pocket cost. Thus, the novelty of the present work lies in its letting risk reduction be traded off against several attributes. 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.

Keywords: Conjoint Analysis; Risk Reduction; Willingness-To-Pay; Discrete-Choice Experiments (search for similar items in EconPapers)
JEL-codes: C25 D61 D81 H43 I18 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2000-06
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Health Economics 11, 2002, pages 129-139

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https://www.zora.uzh.ch/id/eprint/52155/1/wp0003.pdf First version, 2000 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:soz:wpaper:0003

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