Unbiased Analysis of Today's Healthcare Issues

Why shopping for health insurance is hard

The premise is simple.  Create markets, let consumers choose the products that fit them best, and the competition will lead to higher quality and lower prices.  That is the premise behind the Affordable Care Act’s health insurance exchanges.  A necessary condition for this to work, however, is that patients have visibility into the quality and […]

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Calculating Optimal Trial Sample Sizes: EVSI

Chapter 7 of Decision Modelling for Health Economic Evaluation looks at the calculating the Expected Value of Sample Information (EVSI).  In particular, EVSI can answer the question of optimal sample sizes. The Wrong Way How do scientists currently decide on sample sizes?  Often they will do one of the following: “(i) estimate potential grant funding […]

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Expected Value of Perfect Information

You have just done a study comparing the cost-effectiveness of drug A and drug B.  Should you just rest on these laurels or is further research on drug B warranted.  Decision Modelling for Health Economic Evaluation claims that there are 3 criteria that should determine whether or not you decide to collect more information: The […]

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Economics of Information

Most economics simplify markets and assume that there is one market price. In reality, however, we observe significant price dispersion. Because of this, we see that that searching for the lowest price–while costly–can buyers to superior outcomes. George Stigler (1961) is a seminal paper on the Economics of Information which I will review here. When […]

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