Bleichrodt, Han, Crainich, David, Eeckhoudt, Louis and Treich, Nicolas (2020) Risk aversion and the value of diagnostic tests. Theory and Decision, 89. pp. 137-149.

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Identification Number : 10.1007/s11238-020-09750-8


Diagnostic tests allow better informed medical decisions when there is uncertainty about a patient’s health status and, therefore, about the desirability to undertake treatment. This paper studies the relation between the expected value of diagnostic information and a
patient's risk aversion. We show that the ex ante value of diagnostic information increases
with risk aversion for diseases with low prevalence, but decreases with risk aversion for diseases with high prevalence. On the other hand, the ex post value of diagnostic information always increases with the patient's degree of risk aversion.

Item Type: Article
Language: English
Date: March 2020
Refereed: Yes
JEL Classification: D80 - General
I10 - General
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 19 Feb 2020 15:27
Last Modified: 18 Apr 2024 11:33
OAI Identifier:
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