Quotation Walther, Herbert. 2015. Uncertainty, Anomalies in Intertemporal Choice and the Demand for Health Care.


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Abstract

An intertemporal state dependent emotional expected utility (EEU-)model - taking into account anticipated temporary utility utility flows caused by emotional shocks after resolution of uncertainty in addition to expected permanent utility flows of wealth - is used to explain seemingly irrational behavior of patients like delaying a diagnosis in spite of severe symptoms of illness. If the discount rate is sufficiently high (low) the EEU-subject will prefer to delay (speed up) the demand for health care in comparison to the cool EU-subject. However, after getting - incidentally - a diagnosis of bad health, the same EEU-subject, who had been willing to delay, can be lured into unfair therapy bets. Diagnostic fees strengthen the preference for delay. If the health status cannot be changed after getting the diagnosis of illness (Huntingtons dis- ease), not knowing the status will be strictly preferred by the EEU-subject. Propagating preventive care via frightening (rather than enlightening) arguments might even raise the attractiveness of procrastination).

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Uncertainty, Anomalies in Intertemporal Choice and the Demand for Health Care
Year 2015
URL https://www.researchgate.net/publication/271846749_Now_or_later_Anomalies_in_Intertemporal_Choice_and_the_Demand_for_Health_Care
JEL I110; D810

Associations

People
Walther, Herbert (Details)
Organization
Department of Economics (Kartal) (Details)
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