SPM (Stated Preference Method)

1. Description

SPM (Stated Preference Method) explores how stakeholders respond to decision problems in hypothetical scenarios. [1][2] The response to real scenarios is known as the "revealed preference method". Whilst revealed preference may be favourable, there are four compelling reasons why stated preference should be considered:
  • it may not always be possible to infer stakeholders' preferences in drug benefit-risk assessments because many aspects of healthcare do not follow market goods behaviour where trade-offs are explicit;
  • asymmetric information problem may occur in revealed preference when the actual decision from a stakeholder (say a patient) is influenced by another stakeholder (say a physician) who is more informed about the trade-offs;
  • it is not possible to specify revealed preference in advance to guarantee that an appropriate benefit-risk model can be developed;
  • stated preference allows large data to be collected at relatively moderate cost.

2. Evaluation

2.1 Principle
  • SPM is an umbrella term for a variety of utility elicitation techniques
  • There is no specific ascribed set of methodological steps and mathematical techniques for SPM.
  • It may be argued that choice behaviour elicited under hypothetical circumstances may not truly reflect stakeholder behaviour in real life situations.[1]
  • It can be questioned whether the results from SPM can be transferred and applied to real decision scenarios.
  • The principles of the methods can be easily understood as it simply involves transferring the value judgements of the stakeholders in hypothetical scenarios to real life situations.

2.2 Features
  • SPM assesses benefits and risks simultaneously through the descriptions in a hypothetical scenario.
  • The description of the scenario is flexible and easily adaptable for purpose.
  • It may include different numbers of benefits and risks which have the potential to vary over time.
  • It can include numerical and/or visual representations from multiple sources of evidence.

2.3 Visualisation
  • There is no standard visual representation in the application of SPM.
  • 2.4 Assessability and accessibility
  • The acceptability and interpretation of the parameters and results depends on the specific type of stated preference methodology (DCE, CV, CA).
  • SPM collects large amounts of data at a moderate cost.
  • It can examine proposed changes from a stakeholder perspective prior to implementation. [1]
  • SPM offers unique insight into stakeholders' preferences and decision-making.

3. References

[1] Ryan M, Gerard K, Amaya-Amaya M. Using Discrete Choice Experiments to Value Health and Health Care. Dordrecht, The Netherlands: Springer; 2008.
[2] Pearce D, ??zdemiroglu E, Bateman I, Carson RT, Day B, Hanemann M, et al. Economic valuation with stated preference techniques. Summary guide. Norwich: Queen's Printer and Controller for Her Majesty's Stationery Office; 2002. Report No.: 01 SCSG 1158.