Economic value refers to the maximum amount of money a client is willing to give for an item or a service in an open market economy. The economic value of a product or service is usually set by the partialities of a certain group of people and the tradeoffs its members create given their own resources. Economic value is right connected to the worth that any given market places on a product. Considerably the Economic value cannot be considered as static since it fluctuates whenever the prices or the qualities of similar products changes. The way people decide to spend their earnings, therefore, defines a product or service economic value.
Sources of economic value for IVM vs IVF
There are several sources of economic value which are differing between the two cycles. These sources act as a determinant factors from which the clients will base their decisions on which one to adopt and the one to ignore. These factors ranges from the clients expected outcome and the consequences to incur in undergoing the whole process. Based on the lecture notes the following sources have been identified as the key determinants of economic value comparison between the IVM and the IVF (Smith & Desvousges, 2011).
Hormonal side effects to clients
IVF step one which involves the process of Hormonal stimulation has had many side effects both physical and physiological. These side effects include but not limited to; Nausea, mood swings, general discomfort and reduced sexual desires which to some cases leads to loss of work days. This step of Hormonal stimulation is avoided when it comes to IVM cycle but the rest of steps such as egg aspiration, fertilization and Embryo transfer adopted typically as in the IVF (Richardson & Loomis, 2014).
Considering both physical and psychological side effects which are associated with this initial step of IVF cycle such as Nausea, mood swings and general discomforts; clients are likely to shy away from going the IVF mode to IVM. This is clearly a source of economic value favoring the IVM mode to IVF (Debreu, 2011).
The costs incurred to undergo either the IVM or IVF
The IVM mode makes use of only the 2-4 steps of IVF. Due to this avoidance of the hormonal stimulation first step of IVF, the number of significant costs of the IVM becomes considerably low since some costs such as prices for IVM media have been cut. This mode aggregates to $4,000 less costly when it is assessed in consideration with the IVF mode. Clients will prefer this mode to IVF since it’s quite cheaper. This as well becomes a source of economic value in favor of IVM mode (Woodward & Wui, 2014).
Methods used to determine the willingness of couple to pay for a Cycle of IVM
Hormonal side effects
The effects of hormonal stimulation as depicted by the IVF cycle had negative impacts and due to this factor, it is even evident that a couple could even start the process and terminate before even reaching the final stage. This confirms the severity side effects of this mode. Having an alternative to evade these severe psychological and physical tortures was a big relieve. This relief was no other than the introduction of IVM. This shows that clients with infertility problems would be highly willing to pay for this mode to evade the severe side effects involved with adopting the IVF cycle (Richardson & Loomis, 2014).
Time taken for the egg maturity
Initially, the maturity period taken by the egg was 30 days. This is the statistics based on the IVF cycle. This is considerably a long time periods of waiting considering the alternative period of 2 days applicable in the IVM cycle. The waiting time cost in this scenario would then play a very significant role for the choice to be made by the client. To evade these long periods of egg maturity waiting, clients would be willing to sacrifice any amount purposely to have this cycle hastened (Smith & Desvousges, 2011).
Individual decision on the amount to charge for a cycle
Holding some factors constant such as insurance coverage, channels and regulations I would charge $12000 for a cycle of IVM. Basing my argument on the utility theory of value where the price and the value are believed to solely be based on the level of satisfaction an individual receives from a certain product or a service (Smith & Desvousges, 2011), IVM cycle had all the benefits clients would wish to get in cases of infertility problem. To begin with, it did not have the side effects initially encountered in its earlier version “IVF”.
Secondly, the maturity of eggs could take 2 days which was quite a reduced duration when compared to the time this maturity process could take in IVF (30 days). These two important improvements of IVM cycle compared to IVF cycle ensured high levels of client satisfaction. According to Utility theory of value, these benefits of IVM over the IVF directly qualified this Cycle to me of more value than IVF and bearing in mind that the cost of IVF stood at $9000, this satisfies my proposed cost for the IVM cycle (Richardson & Loomis, 2014).
Debreu. (2011). Theory of value: An axiomatic analysis of ecological equilibrium. Washington: University press.
Richardson, & Loomis. (2014). sources of economic value to an industry. Journal of ecological economics, pp.126-187.
Smith, & Desvousges. (2011). An empirical analysis of the economic value. journal of political economy, pp.134-156.
Woodward, & Wui. (2014). The economic value of healthy services .