This is a past event
The first HERU External Seminar of the 2019/20 session will be delivered by Sebastian Neumann-Böhme, PhD Candidate, Department of Health Economics, Erasmus School of Health Policy and Management, Erasmus University Rotterdam.
Title: Trust me; I know what I am doing. Does domain experience reduce preference reversals in decision making for others?
Authors: Sebastian Neumann-Böhme*, Stefan A. Lipman, Werner B.F. Brouwer, Arthur E. Attema.
Abstract: The elicitation of preferences, i.e. finding out if one prefers A over B or vice versa, is central to many topics studied in health economics and many methods exist for this purpose. However, it is well-known that when comparing between those methods we can find preference reversals, i.e. choosing A over B, while simultaneously preferring B over A. These inconsistencies have been reported for health and financial outcomes, and pose a significant problem to theoretical and applied work. This paper examines if people with domain experience through in medicine or finance, show fewer preferences reversals in their areas of expertise when making decisions for others. Furthermore, we aim to reduce the degree of preference reversals by using guided choice lists in an online experiment (n=252). Overall, reversals were more likely to occur for medical students, within the domain of health outcomes, and for open-valuation questions. Our results indicate that people with domain experience show fewer preference reversals in their area of expertise and that choice lists reduce reversals in both domains. While preference reversals remain a significant theoretical and practical problem, especially in unfamiliar domains, the use of clearer valuation procedures may offer a solution.
Note that a sandwich lunch will be available from 12.15pm.
- Speaker
- Sebastian Neumann-Böhme
- Hosted by
- Professor Marjon van der Pol
- Venue
- HSB-115, Foresterhill, University of Aberedeen