  This paper presents a method for incorporating risk aversion into existing
decision tree models used in economic evaluations. The method involves applying
a probability weighting function based on rank dependent utility theory to
reduced lotteries in the decision tree model. This adaptation embodies the fact
that different decision makers can observe the same decision tree model
structure but come to different conclusions about the optimal treatment. The
proposed solution to this problem is to compensate risk-averse decision makers
to use the efficient technology that they are reluctant to adopt.
