Journal of Risk and Uncertainty

, Volume 41, Issue 3, pp 195–218

How would you like your gain in life expectancy to be provided? An experimental approach

  • Jytte Seested Nielsen
  • Susan Chilton
  • Michael Jones-Lee
  • Hugh Metcalf
Article

DOI: 10.1007/s11166-010-9104-y

Cite this article as:
Nielsen, J.S., Chilton, S., Jones-Lee, M. et al. J Risk Uncertain (2010) 41: 195. doi:10.1007/s11166-010-9104-y

Abstract

This paper reports the results of an empirical study investigating people’s preferences over three different types of perturbation to their survival function, each perturbation generating the same gain in life expectancy. Preferences over the three different perturbations were found to be distributed more or less evenly across the subject pool. Use of a novel experimental methodology generated economically consistent and intuitively plausible responses to (necessarily) hypothetical questions concerning improvements in life expectancy by first allowing respondents to gain experience while making similar choices in an incentivized setting involving financial risk. The results demonstrate the potential for economic experiments to contribute to the development of more robust methods for policy evaluation in domains where physical risk is an important factor.

Keywords

Value of statistical lifeIncentivised learningDistribution of life expectancy gains

JEL Classification

J17D6

Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  • Jytte Seested Nielsen
    • 1
  • Susan Chilton
    • 2
  • Michael Jones-Lee
    • 2
  • Hugh Metcalf
    • 2
  1. 1.Institute of Public Health – Unit for Health EconomicsUniversity of Southern DenmarkOdense CDenmark
  2. 2.University of NewcastleNewcastleUK