ALTERNATIVE APPROACHES TO VALUING INTANGIBLE HEALTH LOSSES - THE EVIDENCE FOR MULTIPLE-SCLEROSIS

This study uses both risk-risk and risk-dollar approaches to assess in tangible health losses associated with multiple sclerosis (MS). Using an estimation approach that adjusts for potential perceptional biases that may affect the expressed risk tradeoffs, we estimated parameters of the utility function of persons with and without MS as well as the degree of subjects' overestimation of the probability of obtaining MS. The sample included subjects from the general population and persons with MS. We found that marginal utility of income is lower in the stat e with MS than without it. However, the difference in marginal utility in the two states was greater for persons without MS than for those w ith the disease. Persons with MS overestimated the probability of acqu iring MS to a greater extent than did persons within MS. Correcting fo r overestimation of this probability, the value of intangible loss of a statistical case of MS derived from responses of the general populat ion was US$350,000 to US$500,000. Persons with MS were willing to pay somewhat more than this (D80, I18, J17), (C) 1998 Elsevier Science B.V . All rights reserved.