Mandatory public health interventions, loss of consumer choice and economic evaluation: Does the (dollar) value for those in favour, compensate for the loss in consumer choice
Key objective:
To conduct a pilot study to quantify the loss of consumer choice, in dollars. By doing so we aim to estimate the ‘cost’ associated with reduced consumer choice when mandatory health programmes (MHP), in particular preventative interventions, replace voluntary ones
Governments are increasing their focus on mandatory public health programmes following positive economic evaluations of their impact. This project involved reviewing the economic theory behind the loss of consumer choice resulting from MHPs. A literature review was then conducted to identify economic evaluations of MHP, whether they discuss the impact on consumer choice and any methodological limitations. It was found that the impact of MHP on the loss of consumer choice has largely been ignored in economic evaluations and there were significant methodological limitations whenever it was included.
Whether the loss of consumer choice from implementing MHPs can be measured using discrete choice experiments (DCEs) was then explored using the following case studies: fortification of bread making flour, mandatory influenza vaccination, and banning trans-fats. Overall it was found that DCEs can be used to measure the loss of consumer choice and the loss of consumer choice must be estimated for each MHP being evaluated.
Future research into the importance of the loss of consumer choice to the final implementation decision is planned.
Funding source
Faculty of Business Research Grant
CHERE staff
Bonny Parkinson, Stephen Goodall, Richard Norman
