What question did this study set out to answer?

To assess methodological complexities when introducing cost variables into conjoint analysis and examine how pricing structures bias implicit willingness-to-pay estimates.

August 2, 2002Health Economics

Conjoint analysis. The cost variable: an Achilles' heel?

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To assess methodological complexities when introducing cost variables into conjoint analysis and examine how pricing structures bias implicit willingness-to-pay estimates.
Analyzed data from 1,991 Danish survey interviews evaluating choice of hospitals and general health-care systems using three discrete choice tasks each.
Conducted model comparisons assessing variations in the applied cost range and the inclusion of a dummy variable representing the utility of payment per se.
Wider cost ranges with higher payments led to lower parameter weights for the payment variable, thereby inflating implicit willingness-to-pay estimates.
Incorporating a dummy variable for payment presence significantly altered model dynamics, causing other variables to lose statistical significance or reverse signs.

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Implication

Survey analysis reveals that cost ranges alter willingness-to-pay estimates in healthcare choices, indicating that payment modeling requires multidimensional structures.

Cite This Study

Skjoldborg et al. (2002) studied this question.

synapsesocial.com/papers/6aaf6b127e8385fbd3d06708 https://doi.org/10.1002/hec.742

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Implication

Survey analysis reveals that cost ranges alter willingness-to-pay estimates in healthcare choices, indicating that payment modeling requires multidimensional structures.

Conjoint analysis. The cost variable: an Achilles' heel?

Key Points

Discussion

Implication

Cite This Study

Conjoint analysis. The cost variable: an Achilles' heel?

Key Points

Discussion

Implication

Cite This Study

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