Which Patient do I treat? Economists and Physicians in the Lab Marlies Ahlert Stefan Felder Bodo Vogt University Halle-Wittenberg Universities of Duisburg-Essen and Basel University of Magdeburg Research questions • Elicitation of social preferences of indi-viduals deciding in allocation problems • Choices more in line with utilitarian prin-ciples or more with some egalitarian rules? • Framing effects (med vs. neutral)? • Professional effects (physicians vs. economists)? 2 Overview 1. 2. 3. 4. 5. The allocation problem and possible solutions Classification of distributors Framing and professional effects Who is being served and how much do they receive? Conclusion 3 1. Allocation problem • • • • Economist / physician i=0 Endowment: ECU / time R 7 recipients / patients i = 1,...,7 Recipients are differentiated acc. to - minimal needs mi - productivity / effectivity pi 4 The allocator decides about the ration of the resources each of the recipients i receives: ri Payoff of recipient i 0, i ri pi if ri mi if ri mi r R i i 5 „Induced“ preferences Payoff of the allocator: 0 t i i i c i 0 t: participation rate of the recipients‘ payoffs (20%) c: Fine for every recipient with zero payoff (50 ECU) 6 Examples for allocation problems (3 out of 10) Ressource Endowments R{1000, 1600} Person 1 2 3 4 5 6 7 mi i mi 300 50 150 50 100 300 100 pi 4 3 3 2 3 5 4 mi 200 100 10 50 50 10 100 pi 4 2 1 2 3 2 3 mi 300 200 500 100 100 200 300 pi 4 2 1 2 3 4 1 7 1050 520 1700 2. Classification of allocators (ideal types) Own payoff maximizer: Typ S (OPMA) Maximizes his own payoff, acts according to the induced preferences WS (0 , 1 ,...,n) = 0 Be i the most productive person, person k is being served if t mk pk > t mk pi - c . Residual endowment goes to the most productive individual 8 Utilitarian: Typ U (UA) WU 0 , 1 , 2 ,..., n 0 i i Modified dominance criterion for serving k: t 1 mk pk t 1 mk p1 c Hurdle is higher 9 Number maximizer: Typ N (NMA) maximizes WN 0 , 1 , 2 ,..., n Ni i 0, if i 0 with Ni 1, if i 0 Priorization acc. to minimal need serves to overcome i=0 If the residual endowment is not sufficient to serve a further person, the allocator is indifferent as to which person is being served and who receives the residual. 10 Rawlsian: Typ R (RA) Priorization according ot minimal need (like NMA) Allocates the residual resources according to the leximin-criterion He serves persons with low mi pi within the set of recipients 11 Experimental design /1 • 10 treatments • 1 distributor • 7 potential recipients • 10 x 7 choices for each distributor R 1000,1600 12 Experimental design /2 17 Sessions with 136 students in total 2 different „framings“: neutral, medical 22 advanced medical students (8 in the neutral, 14 in the medical frame ) 36 students in economics (21 in the neutral, 15 in the medical frame ) MaXLab Magdeburg, elfe Essen 13 2. Classification of allocators Framing S Max payoff N Max number R Rawls not classified Economists neutral med. Physicians neutral med. 6 2 8 1 1 2 1 2 3 1 1 2 10 6 16 2 4 6 0 2 2 2 3 5 2 1 3 3 4 7 2 2 4 0 1 1 14 General observations tested for • Type of allocators are more clearly revealed unter familiar conditions: - Economist in the neutral frame, Types S and N - Physicians in the medical frame, types N uad R • in both frames, physician more clearly deviate from the induced direction (toward altruistic behavior) • Economist deviate more from the induced direction in the neutral frame 15 3. Framing and professional effects Type Faculty Economists Physicians OPMA NMA RA Framing effect (medical vs. neutral setting) 1.45*** (1/1.29)** 1.26* (1/1.20) 1.10 (1/1.08) Faculty effect (physicians vs. economists) 1.28** 1.12 16 (1/1.19)** 5. Who is being served and by how much? Hypothesis set 1 • All allocators prioritize persons with low minimal need • Typ S has a strong positive interest to serve persons with high productivity 17 5. Who is being served and by how much? logit-model for positive payoffs of the recipients • The endowment has a positive effect on the likelihood of being served • All allocator serve those persons more likely who have a low minimial need (holds for types N and R) • All allocator serve those persons more likely who have a high productivity (holds for types S and N 18 5. Who is being served and by how much? Hypotheses set 2 • Typ S und Typ N will serve those recipient extra, who show a high productivity • Rawlsian will increase the extra ration for those, who have a long initial payoff 19 Size of allocation, given the payoff is positive Variables Coefficient Constant OPMA NMA RA Endowment Minimum need Productivity OPMA . productivity NMA . productivity RA . productivity . minimum need -49.81 -161.24 -52.12 -6.12 14.99 -0.02 60.12 53.85 2.84 *** *** ** *** *** -0.08 *** Number of observations = 2,973 Number of Groups = 58 R²: within = 0.169 R²: between = 0.279 R²: overall = 0.175 20 Std. err. 15.68 27.03 20.53 17.07 10.60 0.02 4.61 8.73 6.47 0.01 Conclusion • We are able to identify types, who systematically differ from each other • Distributive norms show up more clearly under conditions familiar to the allocators (oec,oec; med,med) • Productivity (+) und minimal need (-) influence the probability of being served 21