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Measuring health utilities for economic
evaluation
What is utility?
o In economics, utility is a measure of
relative satisfaction It is a term referring to
the total satisfaction received by a
consumer trom consuming a good or
service
Preference, value, utility
o Preference is greater liking/desire toward
something over others
o Value measures preference under
certainty
o Utility measures preference under
uncertainty
What is the utility in cost utility analysis?
Health utility
OA single measure for multiple
(composite? ) health outcomes(i.e
effectiveness, and side effects)
口 Anchored at o for dead and1 for ful‖l
health
a Comparability across different
treatments or diseases
von Neumann-Morgenstern utility theory
A mathematical decision theory describing
how a rational individual should make
decisions when faced with uncertain
outcomes
von Neumann and morgenstern 1944
Axioms of VNM utility theory
o Existence and transitivity of preference
A)b or a(B
AN B
If ab and Bc, then A)c
If a- band bc. then a c
Independence of preference
If a)b then pA+(1-pC pB+(1-pC
Continuity of preference
If A)Band BC, then existing a probability p,
B IpA +(1-pc
How to measure health utilities?
a With established elicitation techniques
Direct measure
Designing your own questionnaire/protocol
Applying directly elicitation techniques
Indirect measure
Use of established questionnaire
Calculating health utilities using scoring
algorithms based on elicitation techniques
a Without established elicitation techniques
Judgment
Direct measures
avisual analogue scale (vas
口 Standard gamble(SG)
口 Time trade-off(TTo)
DIscrete choice experiment(DCE)
Steps for direct measurement
Step One
Developing health state descriptions
Step Two
Eliciting preferences
Step Three
Calculating health utilities
Visual Analogue Scale(VAs)
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