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Health values and prospect theory
1Center for Biomedical Ethics, Stanford University Medical Center, Palo Alto, California 94304, USA. jrt@leland.stanford.edu
Summary
Prospect theory may explain how individuals value health states, influencing medical decisions. Further research is needed to clarify the link between health values and decision-making frameworks.
Area of Science:
- Health economics
- Decision science
- Behavioral economics
Background:
- Health values significantly influence medical decision-making.
- Existing research indicates complex and dynamic ways individuals perceive health.
- Prospect theory offers a framework for understanding choices under uncertainty.
Purpose of the Study:
- To explore the application of prospect theory to health values.
- To review existing health research concerning prospect theory.
- To discuss implications for cost-effectiveness analysis.
Main Methods:
- Literature review of health research relevant to prospect theory.
- Analysis of how prospect theory principles apply to health state valuation.
- Examination of prospect theory's role in economic evaluations of health.
Main Results:
- Experimental data suggest complex individual valuation of health states.
- Empirical support for prospect theory in health valuation is mixed.
- Prospect theory has potential implications for cost-effectiveness analyses.
Conclusions:
- Prospect theory provides a potential framework for understanding health values.
- Further research is warranted to explore the link between prospect theory and health values.
- Clarifying this link can improve health decision-making and economic evaluations.