That was the somewhat humorous--but nonetheless valuable--conclusion from a study sponsored by MIT and led by a Duke behavioral economist.
It seems that researchers told one group that a medication cost $2.50 per pill and told another group that it cost ten cents per pill. Both were identical placebos.
85% of those who took the "$2.50 pill" reported pain relief.
61% of those who took the "10 cent pill" reported pain relief.
I guess we have always known that when it comes to health care a good name and a higher price has always counted for something in the absence of hard data to the contrary.
Yesterday, in a post reporting a 7.4% increase in brand-name prescription drugs during 2007, I asked why it was necessary for these prices to rise by two-and-a-half times the rate of overall inflation.
Maybe the pharmaceutical industry knows that lots of advertising and higher prices actually help them!
Avoid having to check back. Subscribe to Health Care Policy and Marketplace Review and receive an email each time we post.
- ► 2017 (33)
- ► 2016 (27)
- ► 2015 (26)
- ► 2014 (36)
- ► 2013 (48)
- ► 2012 (32)
- ► 2011 (36)
- ► 2009 (161)
- Brian Klepper's recent post, "What Walgreens Surel...
- What Worksite and Retail Clinics Mean for the Prim...
- Democrats Ask GAO to Study the Individual Health I...
- Today's HMO Carnage on Wall Street
- The Higher the Price the Better It Works--Placebo ...
- Drug Prices Rise 7% For Drugs Most Commonly Prescr...
- ▼ March (6)
- ► 2007 (235)