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The willingness to pay for health improvement under comorbidity ambiguity
Yoichiro Fujii1, Yusuke Osaki2
1School of Commerce, Meiji University, 1-1 Kanda-Surugadai, Chiyoda-ku, Tokyo, 101-8301, Japan.
Abstract:
Accumulated medical information is necessary to determine comorbidity risk between a primary disease and secondary diseases. However, medical decisions often must be made without conclusive evidence because individuals do not have sufficient information. By introducing ambiguity regarding comorbidities, we describe situations in which individuals face a set of plausible comorbidity risks that determines the correlations between primary and secondary diseases. This study examines the conditions under which the willingness to pay for health improvement is larger with comorbidity ambiguity than without it. This study also examines the effect of changes in ambiguity and ambiguity aversion on the willingness to pay.
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