Addressing uncertainty in medical cost-effectiveness analysis implications of expected utility maximization for methods to perform sensitivity analysis and the use of cost-effectiveness analysis to set priorities for medical research

J Health Econ. 2001 Jan;20(1):109-29. doi: 10.1016/s0167-6296(00)00071-0.

Abstract

This paper examines the objectives for performing sensitivity analysis in medical cost-effectiveness analysis and the implications of expected utility maximization for methods to perform such analyses. The analysis suggests specific approaches for optimal decision making under uncertainty and specifying such decisions for subgroups based on the ratio of expected costs to expected benefits, and for valuing research using value of information calculations. Though ideal value of information calculations may be difficult, certain approaches with less stringent data requirements may bound the value of information. These approaches suggest methods by which the vast cost-effectiveness literature may help inform priorities for medical research.

Publication types

  • Evaluation Study
  • Research Support, Non-U.S. Gov't
  • Research Support, U.S. Gov't, Non-P.H.S.
  • Research Support, U.S. Gov't, P.H.S.

MeSH terms

  • Cost-Benefit Analysis*
  • Decision Making
  • Health Priorities*
  • Health Services Research
  • Humans
  • Male
  • Outcome Assessment, Health Care / economics
  • Prostatic Neoplasms / therapy
  • Research Support as Topic / economics*
  • Research Support as Topic / standards*
  • Social Welfare / economics
  • United States