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Testing Nonmonotonicity in Health Preferences
Jose-Maria Abellan-Perpiñan1, Jorge-Eduardo Martinez-Perez1, Jose-Luis Pinto-Prades2
1Applied Economics Department, Faculty of Economics and Business, University of Murcia, Murcia, Spain.
Many individuals show nonmonotonic preferences for health durations, preferring shorter durations after a certain point. This challenges standard health economic models and highlights the maximum endurable time phenomenon.
Area of Science:
- Health Economics
- Decision Science
- Psychometrics
Background:
- Previous research suggests individuals may prefer shorter durations of poor health up to a maximum endurable time (MET).
- Understanding preferences for health duration is crucial for health policy and economic modeling, particularly for quality-adjusted life years (QALYs).
Purpose of the Study:
- To empirically test monotonicity in life duration preferences across various health states.
- To investigate the prevalence of maximum endurable time (MET) preferences and preference reversals.
Main Methods:
- Employed two ordinal tasks: direct choices and rankings of health episodes combining EQ-5D-3L states and durations.
- Recruited 90 participants for experimental sessions to elicit and analyze preference patterns.
- Quantified monotonicity violations and preference reversals between the choice and ranking tasks.
Main Results:
- Significant rates of nonmonotonic preferences were observed, ranging from 49% (choices) to 71% (rankings) within subjects.
- Mean nonmonotonicity rates per health state were 22% (choices) and 34% (rankings).
- Evidence of preference reversals (1.5%-33%) and scarce transitivity violations were found.
Conclusions:
- Nonmonotonic preferences, particularly the MET phenomenon, are prevalent in mid-range health states.
- Observed preference reversals suggest potential limitations in using similar response scales for different tasks.
- Findings challenge the validity of multiplicative QALY models and highlight the need for more nuanced preference elicitation.
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