Willingness to pay for reductions in health risks under anticipated regret |
| |
| Institution: | 1. CEIS, University of Rome “Tor Vergata”, Via Columbia 2, 00133 Rome, Italy;2. Sapienza University of Rome (DISSE), Piazzale Aldo Moro, 5, 00183 Rome, Italy;3. Gran Sasso Science Institute (GSSI), Viale Francesco Crispi 7, 67100, L’Aquila, Italy;1. Department of Economics, Centre for Health Economics, University of Gothenburg, Gothenburg, Sweden;2. Department of Economics, University of Central Florida, P.O. Box 161400, Orlando, FL 32816-1400, USA;1. School of Economics, Southwestern University of Finance and Economics, Chengdu, 611130, China;2. Department of Economics and Related Studies, University of York, York YO10 5DD, UK |
| |
| Abstract: | In this paper, we study the willingness to pay for reductions in health risks within a framework of anticipated regret. We show that ex post information provision can be a relevant factor for regret theory to account for why people are sometimes so inclined to protect themself against certain types of health risks but not others. In particular, we find that under full resolution of uncertainty disproportionate aversion to large regrets exaggerates willingness to pay estimates. The effect induced by this notion of regret aversion can be interpreted as if regret-averse people overweight risk reductions due to prevention. However, as feedback over forgone acts is missing, the regret aversion effect disappears. Finally, we show that information avoidance induced by regret aversion can significantly bias our evaluation to prefer those health programs that completely eliminate a risk, i.e., the certainty effect. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
