Risk and Medical Decision Making

  • Louis Eeckhoudt

Part of the Studies in Risk and Uncertainty book series (SIRU, volume 14)

Table of contents

  1. Front Matter
    Pages i-2
  2. Introduction

    1. Louis Eeckhoudt
      Pages 4-6
  3. Developments inside the E-U model

  4. M.D.M and New Models of Choice Under Risk

    1. Front Matter
      Pages 88-89
    2. Louis Eeckhoudt
      Pages 109-118
    3. Louis Eeckhoudt
      Pages 119-131
  5. Back Matter
    Pages 132-135

About this book


For people interested in risk management, medical activity represents a stimulating field of study and thought. On the one hand, progress in medical knowledge and technology tends to reduce the risks to survival that individuals would face in the absence of appropriate diagnostic or therapeutic instruments. On the other hand, new medical technologies simultaneously create their own specific risks, sometimes simply because their effects are less well-known than those of established ones. In a sense any medical progress simultaneously generates new risks while destroying old ones. Moreover, unlike many financial risks that can be either divided or transferred to others (e.g. through diversification, insurance or social security) the personal aspects of medical risks are by essence indivisible and non-transferable. As a result, they are in a sense more threatening than financial risks for risk averse patients. These two facts explain and justify the growing interest in risk economics for the fields of medical decision making and health economics.

In Risk and Medical Decision Making, part 1 is developed inside the expected utility (E-U) model and analyses how comorbidity risks affect the well-known "test-treatment" thresholds. Part 2 is devoted to a specific non E-U model with the same purpose: how would one define a threshold in this context and how would one value a diagnostic test? In each of these two parts both diagnostic and therapeutic risks are considered.


economics insurance management risk management utility

Authors and affiliations

  • Louis Eeckhoudt
    • 1
    • 2
    • 3
  1. 1.Catholic Faculties of Mons (B)MonsBelgium
  2. 2.Catholic Faculties of Lille (F)LilleFrance
  3. 3.Center for Operations Research and Econometrics (CORE)Louvain (B)Belgium

Bibliographic information

  • DOI
  • Copyright Information Kluwer Academic Publishers 2002
  • Publisher Name Springer, Boston, MA
  • eBook Packages Springer Book Archive
  • Print ISBN 978-1-4613-5340-9
  • Online ISBN 978-1-4615-0991-2
  • Series Print ISSN 0926-972X
  • Buy this book on publisher's site