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In Sickness but Not in Wealth: Field Evidence on Patients' Risk Preferences in Financial and Health Domains

Galizzi, M. M., Miraldo, M. and Stavropoulou, C. (2016). In Sickness but Not in Wealth: Field Evidence on Patients' Risk Preferences in Financial and Health Domains. Medical Decision Making, 36(4), pp. 503-517. doi: 10.1177/0272989X15626406

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.

Publication Type: Article
Additional Information: Copyright Sage 2016
Publisher Keywords: behavioral experiments in health, field experiments, risk aversion
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
R Medicine > RA Public aspects of medicine
Departments: School of Health Sciences
URI: http://openaccess.city.ac.uk/id/eprint/13529
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