Document de travail

The Value of Cancer Prevention vs Treatment

James K. Hammitt, Daniel Herrera-Araujo et Christoph Rheinberger


We present an integrated valuation model for diseases that pose some chance of death. The model extends the standard one-period value-of-statistical-life model to three health prospects: healthy, ill, and dead. We derive willingness-to-pay values for preven- tion eorts that reduce a disease’s incidence rate as well as for treatments that lower the corresponding health deterioration and mortality rates. We find that the demand value of prevention always exceeds that of treatment. People often overweight small risks and underweight large ones. We use the rank dependent utility framework to explore how the demand for prevention and treatment alters when people evaluate probabilities in a non-linear manner. For incidence and mortality rates associated with common types of cancers, the inverse-S shaped probability weighting found in experimental studies leads to a significant increment in the demand values of both treatment and prevention.

Codes JEL

  • D11: Consumer Economics: Theory
  • D81: Criteria for Decision-Making under Risk and Uncertainty
  • I10: General

Remplacé par

Christoph Rheinberger, Daniel Herrera-Araujo et James K. Hammitt, « The value of disease prevention vs treatment », Journal of Health Economics, vol. 50, décembre 2016, p. 247–255.


James K. Hammitt, Daniel Herrera-Araujo et Christoph Rheinberger, « The Value of Cancer Prevention vs Treatment », TSE Working Paper, n° 16-628, février 2016.

Voir aussi

Publié dans

TSE Working Paper, n° 16-628, février 2016