In Sickness but Not in Wealth. Field Evidence on Patients’ Risk Preferences in Financial and Health Domains
File(s)GMS RP Domains MDM Accepted Dec 2015.doc (3.44 MB)
Accepted version
Author(s)
Miraldo, M
Galizzi, MM
Stravopoulou, C
Type
Journal Article
Abstract
We present results from a hypothetical framed field experiment assessing whether risk preferences significantly differ across the health and financial domains when they are elicited through the same multiple price list paired-lottery method. We consider a sample of 300 patients attending outpatient clinics in a university hospital in Athens during the Greek financial crisis. Risk preferences in finance were elicited using paired-lottery questions with hypothetical payments. The questions were adapted to the health domain by framing the lotteries as risky treatments in hypothetical health care scenarios. Using maximum likelihood methods, we estimated the degree of risk aversion, allowing for the estimates to be dependent on domain and individual characteristics. The subjects in our sample, who were exposed to both health and financial distress, tended to be less risk averse in the financial domain than in the health domain.
Date Issued
2016-02-08
Date Acceptance
2016-02-08
Citation
Medical Decision Making, 2016, 36 (4), pp.503-517
ISSN
1552-681X
Publisher
SAGE Publications (UK and US)
Start Page
503
End Page
517
Journal / Book Title
Medical Decision Making
Volume
36
Issue
4
Copyright Statement
© Sage 2016. The final publication is available via Sage at http://dx.doi.org/10.1177/0272989X15626406
Subjects
behavioral experiments in health
field experiments
risk aversion
Health Policy & Services
1117 Public Health And Health Services
1402 Applied Economics
Publication Status
Published