Herrero, C., H. Bleichrodt, and J.L. Pinto
Journal of Health Economics – 21 (2002), 397-403
Abstract: In cost-utility analysis it is assumed that health state valuations are directly comparable across individuals. Instead, health state valuations may be relative and related to people’s expectations and abilities. Then health state valuations are not fully comparable across people and, consequently, cost utility analysis cannot be applied in full. The present paper analyzes this comparability problem and proposes a method to solve it.