Individual Decisions for Health

By Björn Lindgren | Go to book overview

3

Health, genuine uncertainty, and information

Fredrik Andersson and Carl Hampus Lyttkens


Introduction

Ever since the seminal article by Arrow (1963), it has been a commonplace to note that the presence of uncertainty is a particularly salient feature in decisions on health and health care. A number of studies have appeared that introduce probabilistic elements in the individual’s demand for health, and there is a substantial literature that focuses on the value of changes in health risks. For example, in the so-called demand-for-health tradition - emanating from Grossman’s (1972) wellknown work - there are several probabilistic versions, 1 and the implications of risk in the health production function have been explored in a valuation context (Johansson, 1994). 2 There remains to introduce, however, the distinction between risk - i.e. uncertainty with known probabilistic properties - and genuine uncertainty - i.e. uncertainty with unknown probabilistic properties - in formal models of health-related behaviour.

In this chapter, we introduce genuine uncertainty as well as uncertainty aversion into a simple model of individual decision-making about health-related activities. This is potentially important, since, arguably, the conditions for many of the decisions an individual makes concerning his own health more closely resemble conditions of genuine uncertainty than pure risk. The individual is likely to be highly uncertain if not completely ignorant about the probabilities involved. For example, he may be vaguely aware that there is a serious disease called leukaemia while having no idea of whether he is likely to get it and no idea about his possibilities to affect the likelihood of getting it.

Within this format, we investigate the consequences for health-related behaviour of individual attitudes towards health and information as well as of exogenous changes in the individual’s decision environment. In the section on Individual trade-offs and personality traits we show how health-related decisions are affected by the individual’s degree of pessimism with respect to health states with unknown probabilities; we also consider the effects of the individual being confident or diffident about the accuracy of the information he possesses.

Furthermore, we analyse in the section on Individual trade-offs and exogenous changes in information, prevention, prices, and income, how different forms of

-41-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Individual Decisions for Health
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 256

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.