Assessment of the model of economic behavior of the population when consuming patronized goods, considering the heterogeneity of preferences

Abstract

Object: The purpose of this study is to assess the model of economic behavior and its parameters of the population’s preferences when consuming patronized goods, considering the heterogeneity of preferences.
Methods: The study used an approach based on Kahneman-Tversky's prospect theory. A sociological survey conducted with the participation of 2714 respondents is also associated with the Kahneman-Tversky concept. Based on this, it would be logical to look at “loss aversion” in the context of “WTA-WTP discrepancy” (“WTA” – “willingness to accept”; “WTP” – “willingness to pay”): people may neglect to buy the medicines they need because they (wrongly) believe that they need the money for something more important, for example, conspicuous consumption.
Findings: The article compiled a basic model of “willingness to pay for a medical insurance policy”, considering “mental accounting”. When purchasing an insurance policy, an individual compares the utilities, so when an insured event occurs, the loss for the insured individual will be zero. An individual may not buy an insurance policy, since the risk of getting sick is a subjective probability, and if he purchases health insurance, the individual will certainly bear the cost of maintaining the policy. The willingness to pay for a medical policy was positively affected by the respondents’ answers “how much money is spent per month on medicines for the family” and “self-assessment of health” with the options “good”, “satisfactory” and “very bad”.
Conclusions: In 2023, approximately 3.3 million Kazakhstanis were not covered by the compulsory social health insurance system in Kazakhstan. To attract uninsured citizens to the health insurance system, the country is actively discussing measures to stimulate and compel the uninsured population. Considering that the majority of Kazakhstanis’ healthcare expenses are on medicines, there is a need to introduce a medicines insurance system in the country. Population participation in medicines insurance depends on the economic and financial behavior of the population itself. Therefore, the developed quantitative tools show the level of assessment of the population’s willingness to pay for an insurance policy. Given the limited state funding of the healthcare system, there is a need to develop other methods of payment for medical care, such as voluntary health insurance on co-financing terms, co-payment for medicines, etc.