Reference-dependent preferences for maternity wards: an exploration of two reference points.

Area of Science:

• Behavioral Economics
• Decision Science
• Health Economics

Background:

• Decision valuation is influenced by consumption utility and reference points.
• Loss aversion is a key aspect of reference-dependent preferences.
• The precise nature and number of reference points remain unclear.

Purpose of the Study:

• To investigate the existence of multiple reference points in decision-making.
• To empirically test reference-dependent preferences in the healthcare sector.
• To examine how losses and gains interact with multiple reference points.

Main Methods:

• A discrete choice experiment was conducted.
• The study involved 219 women who had given birth in Israel.
• Participants evaluated healthcare service attributes relative to different reference points.

Main Results:

• Evidence supports the existence of two distinct reference points.
• Respondents referred to both a constant experimental scenario and the actual state of service attributes.
• Losses relative to both reference points accumulated and had reinforced effects.
• Gains did not show similar accumulating or reinforcing effects.

Conclusions:

• Individuals utilize multiple reference points when assessing outcomes.
• Loss aversion effects are amplified by multiple reference points in healthcare choices.
• Findings contribute to a nuanced understanding of reference-dependent preferences and loss aversion.