Probability weighting and utility curvature in QALY-based decision making
type: Item
instance of: scholarly article
title: Probability weighting and utility curvature in QALY-based decision making
zbMATH Open document ID: 0984.91035
author: Han Bleichrodt
author: Jaco van Rijn
published in: Journal of Mathematical Psychology
publication date: 2002-05-14T00:00:00Z
review text: Consider a state of health \(x\) such that the \(U\) (1 year in state \(x\)) \(=1\) and a state of health \(z\) such that \(U\) (1 year in state \(z\)) \(=0\); in a standard gamble, one considers the risky situation where one spends \(t\) years in state \(x\) with probability \(p\) and \(t\) years in state \(z\) with probability \(1-p\) with the certainty of being in state of health \(y\) for \(t\) years and one may try to solve the following: \[ \begin{multlined} U\;(t\text{ years in health state }y)=\\ p'U\;(t\text{ years in health state }x)+(1- p')U\;(t\text{ years in state health }z)\end{multlined} \] now, \(p'\) denotes the quality weight of the health profile \(y\). This is the standard method of determining the Quality-Adjusted Life Years (QALY). The problem is that persons may not behave perfectly in accordance with expected utility theory and consequently, the standard gamble may not reveal accurate probabilities. The paper investigates whether rank dependent weighting can improve the descriptive validity of the standard gamble in QALY-based decision making.
reviewed by: Anjan Mukherji
Mathematics Subject Classification ID: 91B16
Mathematics Subject Classification ID: 91B42
zbMATH DE Number: 1339975
zbMATH Keywords: QALY
zbMATH Keywords: choice under uncertainty
zbMATH Keywords: expected utility theory
MaRDI profile type: Publication
full work available at URL: jmps.1999.1257
OpenAlex ID: W2033603564
Wikidata QID: Q52135806
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DOI: 10.1006/JMPS.1999.1257
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description: scientific article; zbMATH DE number 1339975