The role of regret minimisation in lifestyle choices affecting the risk of coronary heart disease

• Published in: Journal of health economics 2013-01, Vol.32 (1), p.253-260
• Main Authors: Boeri, Marco, Longo, Alberto, Grisolía, José M., Hutchinson, W. George, Kee, Frank
• Format: Article
• Language: English
• Subjects: Adult; Aged; Behavioural economics; Cardiovascular disease; Choice Behavior; Coronary Disease - prevention & control; Coronary Disease - psychology; Coronary heart disease risk; Decision making models; Diet - psychology; Dietary choices; Economic models; Economics, Behavioral; Emotions; Female; Health economics; Heart disease; Humans; Life Style; Lifestyles; Male; Middle Aged; Motor Activity; Myocardial Infarction - prevention & control; Myocardial Infarction - psychology; Northern Ireland; Paradigms; Physical activity; Random Regret Minimisation; Random Utility Maximisation; Risk Reduction Behavior; Socioeconomic Factors; Studies; Surveys and Questionnaires; Utility functions
• ISSN: 0167-6296; 1879-1646
• DOI: 10.1016/j.jhealeco.2012.10.007

► This paper introduces the discrete choice paradigm of Random Regret Minimisation (RRM) to the field of health economics. ► The combined use of RRM and Random Utility Maximisation (RUM) models provide useful behavioural insights on choice. ► Whilst the RUM is suitable for calculating welfare estimates, the RRM highlights how anticipated regret affects choices. ► We find that the choices of overweight or obese respondents and smokers are more likely to conform to the RUM approach. ► We also find that the choices of people in good health and with higher education are more likely to reflect the RRM approach. This paper introduces the discrete choice model-paradigm of Random Regret Minimisation (RRM) to the field of health economics. The RRM is a regret-based model that explores a driver of choice different from the traditional utility-based Random Utility Maximisation (RUM). The RRM approach is based on the idea that, when choosing, individuals aim to minimise their regret–regret being defined as what one experiences when a non-chosen alternative in a choice set performs better than a chosen one in relation to one or more attributes. Analysing data from a discrete choice experiment on diet, physical activity and risk of a fatal heart attack in the next ten years administered to a sample of the Northern Ireland population, we find that the combined use of RUM and RRM models offer additional information, providing useful behavioural insights for better informed policy appraisal.