Prospect theory states that individuals view transactions relative to a fixed reference point. Individuals are risk averse for gains (i.e., they would prefer $10 for sure over a 50/50 of winning $0 or $20) but risk loving over losses (i.e., they would prefer a 50/50 ‘lottery’ of losing $0 or $20 over a sure loss of $10. But are findings for individual preferences for monetary outcomes relevant for patient preferences over quality of life states?
This is the question examined by Attema et al. (2016) using a survey methodology. They find that:
