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Ordering effect and price sensitivity in discrete choice experiments: need we worry?
Trine Kjaer1, Mickael Bech, Dorte Gyrd-Hansen
1Department of Health Economics, Institute for Public Health, University of Southern Denmark, Denmark. tkj@sam.sdu.dk
Health Economics
|June 21, 2006
Summary
The placement of price information significantly influences patient choices for psoriasis treatments. Higher price sensitivity was observed when cost details were presented last, indicating context-dependent preferences.
Area of Science:
- Health Economics
- Behavioral Economics
- Patient Preferences
Background:
- Understanding patient preferences is crucial for effective healthcare.
- Treatment choice is influenced by various factors, including cost and perceived value.
- The ordering of information may impact decision-making processes.
Purpose of the Study:
- To analyze how attribute ordering affects the perceived importance of price in psoriasis treatment selection.
- To investigate the presence and nature of ordering effects in patient choice experiments.
Main Methods:
- A discrete choice experiment was designed to gather data from psoriasis patients.
- The study specifically tested the impact of placing the price attribute at different positions within treatment descriptions.
Main Results:
- A notable increase in price sensitivity was found when the price attribute was positioned at the end of the treatment description.
- Patient preferences for psoriasis treatments are demonstrably context-dependent.
- Heuristic decision-making processes may play a role in treatment choices.
Conclusions:
- The order in which treatment attributes are presented significantly influences patient price sensitivity.
- Healthcare decision-making is not always purely rational and can be affected by cognitive biases like ordering effects.
- Findings suggest that the presentation format of treatment options is a critical consideration in healthcare policy and patient communication.