Abstract

If it can be agreed that health care resources are finite, it follows that choices between competing needs must be made. Cost utility analysis is an application of decision theory which has been proposed as a strategy for making difficult social decisions about health resource allocations. This method is heavily dependent upon the measurement of social utilities for various health outcomes. Recent work in cognitive psychology suggests that there are important sources of distortion in such measurement. Ethical implications of application of cost utility analysis to health resource allocations are discussed.