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Journal of Risk and Uncertainty

, Volume 55, Issue 1, pp 29–39 | Cite as

Average willingness to pay for disease prevention with personalized health information

  • David Crainich
  • Louis Eeckhoudt
Article
  • 461 Downloads

Abstract

Personal health related information modifies individuals’ willingness to pay for disease prevention programs inasmuch as it allows health status assessment based on intrinsic (instead of average) characteristics. In this paper, we examine the effect that personalized information about the baseline probability of disease has on the average willingness to pay for programs reducing either the probability of disease (self-protection) or the severity of disease (self-insurance). We show that such information raises the average willingness to pay for self-protection while it increases the average willingness to pay for self-insurance if health and wealth are complements (i.e. the marginal utility of wealth rises with health).

Keywords

Personalized health information Willingness to pay Disease prevention Self-protection Self-insurance 

JEL Classification

D81 I18 

Notes

Acknowledgments

We thank seminar participants at the Paris Ouest Nanterre La Défense University, at the JESF meeting in Créteil, at the Ludwig Maximilian University of Munich, at the EGRIE meeting in St Gallen, at the IHEA/ECHE Congress in Dublin, at the University of Dijon and at EM Lyon Business School for constructive comments on earlier versions of the paper. We also thank Christian Gollier and an anonymous referee for helpful suggestions.

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Copyright information

© Springer Science+Business Media, LLC 2017

Authors and Affiliations

  1. 1.CNRS (LEM, UMR 9221)LilleFrance
  2. 2.Iéseg School of ManagementLilleFrance
  3. 3.LEM (UMR 9221)LilleFrance

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