Abstract
We present the motives behind the preferences of healthcare consumers in Kazakhstan using a theoretical model that takes into account behavioral characteristics of healthcare perceptions. One of these characteristics is the presence of a reference point, or the respondent's perception of their baseline health. Behavioral economics, particularly prospect theory (Kahneman and Tversky, 1979), has shown that people evaluate their willingness to pay (WTP) for certain goods depending on this reference point. Furthermore, biases in these estimates may be influenced by socio-demographic characteristics, which we also take into account for our sample of Kazakhstani residents. The aim of the study is to evaluate a model of economic behavior and its parameters of population preferences for the consumption of healthcare services, taking into account preference heterogeneity. Objective: The primary objective of our analysis is to examine the characteristics of attitudes toward treatment associated with national traditions, taking into account family composition, place of residence, and socio-economic status. To identify behavioral patterns in healthcare services among people in different regions of Kazakhstan, to take these patterns into account when making economic decisions, and to develop comprehensive recommendations for improving their accessibility for different segments of the population. The research methodology is based on evaluating the Kahneman-Tversky value function model and its parameters: 𝑟 − (reference point) and 𝐿 𝑙𝑜𝑠𝑠 𝑎𝑣𝑒𝑟𝑠𝑖𝑜𝑛 (loss aversion). The model assumes that a patient who believes they are healthy (𝑟 = 0) has a need to purchase 𝑥, but they have been prescribed a drug at the same price that should protect them from losing health (𝑧). If they purchase it, they will receive r − 𝐿𝑥, i.e., If he doesn't, he receives 𝑟 + 𝑥 − 𝐿 ∙ 𝑧 (he receives 𝑥, but loses health). His decision will depend on which is greater, as well as on parameters such as his disbelief that he will lose health (𝑧 can be a random variable from his point of view), the reference point 𝑟, the properties of the utility function, etc. An approach of this type has been implemented, for example, by Koczegi-Rabin. Based on the Kahneman-Tversky value function and its parameters, a basic model for 𝑤𝑡𝑝𝑝 (willingness to pay for a policy) was developed.