This paper provides a characterization of QALYs, the most important outcome measure in medical decision making, in the context of a general rank dependent utility model. We show that both for chronic and for nonchronic health states the characterization of QALYs depends on intuitive conditions. This facilitates the assessment of the validity of QALYs in rank dependent non-expected utility theories and a comparison with other utility based measures of health.

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Journal of Risk and Uncertainty
Erasmus School of Economics

Bleichrodt, H., & Quiggin, J. (1997). Characterizing QALYs under a General Rank Dependent Utility Model. Journal of Risk and Uncertainty. doi:1007734401982