Sequence effects, health profiles, and the QALY model: In search of realistic modeling

The authors conducted an experiment to determine whether the sequence of presentation of states in a health profile would affect the valuations assigned to them. The empirical task was part of a large standardized experiment involving 104 students. Thirteen health states were valued using two variations of the time-tradeoff method. At the group level, a small but distinct overall effect of the sequence of the tradeoffs was detected after accounting for discounting effects. The respondents were not preference-indifferent concerning the sequence of health states presented. Detailed analysis at the individual level indicated that the overall sequence effect was attributable to two groups of respondents who were sensitive to the sequence of events. One small group, referred to as "best-things-first" respondents, preferred the best years first; the other group, classified as "happy-end" respondents, preferred the reverse sequence. The majority of the respondents, however, were indifferent to the sequence. These results suggest that 1) in valuation experiments involving the time-tradeoff method and 2) in applying valuation results to the evaluation of real-life health consequences, a varying lifetime health profile may not be regarded as simply a chain of independent separately valued and discounted QALY periods. Even elementary valuation tasks cannot safely assume ignorance of prognosis, as the additive utility independence assumption of the QALY model does not hold. The sequence effect at least supplements the conventional general time-preference concept, and specific strategies are suggested to disentangle quantitatively the sequence effect and the time-preference effect.