The Validity of QALYs under Non‐Expected Utility
نویسندگان
چکیده
منابع مشابه
The Validity of QALYs Under Non-Expected Utility
This paper examines applications of non-expected utility in the health domain. The most widely used utility model in health economics, the time-linear QALY model, assumes (i) separability of quality of life and life duration, and (ii) linearity of the utility for life duration. We perform new tests, which are robust to violations of expected utility, of these two assumptions. The data support s...
متن کاملA nonsmooth approach to nonexpected utility theory under risk
We consider concave and Lipschitz continuous preference functionals over monetary lotteries. We show that they possess an envelope representation, as the minimum of a bounded family of continuous vN-M preference functionals. This allows us to use an envelope theorem to show that results from local utility analysis still hold in our setting, without any further differentiability assumptions on t...
متن کاملSmooth Nonexpected Utility without State Independence∗
We propose a notion of smoothness of nonexpected utility functions, which extends the variational analysis of nonexpected utility functions to more general settings. In particular, our theory applies to state dependent utilities, as well as the multiple prior expected utility model, both of which are not possible in previous literatures. Other nonexpected utility models are shown to satisfy smo...
متن کاملAre Counterfactual Decisions Relevant for Dynamically Consistent Updating under Nonexpected Utility?*
This paper proposes a new updating method that preserves dynamic consistency in nonexpected utility. Given nonseparability of disjoint events, preferences conditional on an observed event also depend on counterfactual outcomes, i.e., outcomes that would have resulted outside of the conditioning event; this point has been wellunderstood in the literature. This paper argues that, as a consequence...
متن کاملA Generalization of Pratt-Arrow Measure to Nonexpected-Utility Preferences and Inseparable Probability and Utility
The Pratt-Arrow measure of local risk aversion is generalized for the n-dimensional state-preference model of choice under uncertainty in which the decision maker may have inseparable probabilities and subjective utilities, unobservable stochastic prior wealth, and/or smooth non-expected-utility preferences. Local risk aversion is measured by the matrix of derivatives of the decision maker’s ri...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: The Economic Journal
سال: 2005
ISSN: 0013-0133,1468-0297
DOI: 10.1111/j.1468-0297.2005.00999.x