Demand curves, economists, and desert islands: a response to Feldman and Dowd
Article Abstract:
Demand curves for medical care may be inaccurate measures of consumer utility, and do not validate choices, which may be poor, reflecting what people are prepared to pay rather than how much a purchase is worth to the consumer. There is also empirical evidence which suggests that consumers behave in ways which economic theory does not foresee. Traditional methods of welfare loss are being replaced by new methods which include the concept of how appropriate a service is.
Publication Name: Journal of Health Economics
Subject: Health care industry
ISSN: 0167-6296
Year: 1993
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A model is only as good as its assumptions: a reply to Peele
Article Abstract:
Models of health care decisions should reflect the real world, and patients are unlikely to have access to all the information they need to make rational decisions, however much effort is put into education. This is the key issue in assessing the usefulness of traditional welfare models, which should be abandoned since they do not reflect the real world. Studies of the effectiveness of medical care are more appropriate in assessing welfare losses.
Publication Name: Journal of Health Economics
Subject: Health care industry
ISSN: 0167-6296
Year: 1993
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Evaluating welfare losses in the health care market
Article Abstract:
Assigning marginal valuations to medical care as measured in units is flawed as a means of calculating welfare losses in medical care, and this, rather than traditional ways of measuring welfare, is the problem uncovered by Rice in relation to consumer ignorance. There is a need to develop a way to measure marginal medical care costs in units which can be compared with patients' perceptions of the marginal value of medical care.
Publication Name: Journal of Health Economics
Subject: Health care industry
ISSN: 0167-6296
Year: 1993
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