Exploring the demand for elective egg freezing: A laboratory experiment

Abstract

We conducted a proof-of-concept analysis to demonstrate that government funding decisions can be studied within a lab experiment: We explore the effects of government funding levels, information level, and various participant characteristics on the demand for elective egg freezing (EEF) and in vitro fertilization (IVF), two types of fertility treatment, and determine price and income elasticities of demand within an incentive-compatible experiment.We recruited 217 female participants without children aged 20-29 years. Participants were assigned to one of three between-subjects experimental treatments that varied income endowment and information provided. Additionally, the experiment consisted of 3 within-subjects conditions corresponding to different levels of government funding for IVF and EEF with 2 decision periods (‘planning period’ and ‘family-formation period’) and participants had to indicate their treatment choice aiming to achieve a live birth.The demand for EEF and IVF were shown to be price-inelastic. We found that the increase in the price for EEF and IVF through restrictions in government funding significantly reduced demand for such treatments. However, demand did not significantly change with income level, suggesting a high value associated with fertility treatment.Overall, our study shows that government funding decisions for medical interventions can be explored within an experimental setting.