- Autori:
-
Levaggi, Rosella; Pertile, Paolo
- Titolo:
-
Which valued-based price when patients are heterogeneous?
- Anno:
-
2020
- Tipologia prodotto:
-
Articolo in Rivista
- Tipologia ANVUR:
- Articolo su rivista
- Lingua:
-
Inglese
- Referee:
-
No
- Nome rivista:
- Health Economics
- ISSN Rivista:
- 1057-9230
- Intervallo pagine:
-
1-14
- Parole chiave:
-
personalized medicine; precision medicine; static and dynamic efficiency; value-based prices
- Breve descrizione dei contenuti:
- We use a simple model to study the static and dynamic efficiency of alternative regulation regimes for the reimbursement of medical innovations when responses to a new treatment (effectiveness) are heterogeneous across the eligible population. When the rational behavior of profit-maximizing firms is taken into account, only average value-based prices can ensure both static and dynamic efficiency, but they imply higher expenditure and lower consumer surplus. Ignoring dynamic efficiency, if patients' responses are sufficiently homogeneous, marginal value-based prices may dominate from the payer's perspective. We also present a refinement of average value-based prices that could reverse this result. Overall, the cost of ensuring static and dynamic efficiency is increasing in the degree of heterogeneity. A real-world example is used to illustrate these results.
- Id prodotto:
-
115039
- Handle IRIS:
-
11562/1020031
- ultima modifica:
-
22 gennaio 2021
- Citazione bibliografica:
-
Levaggi, Rosella; Pertile, Paolo,
Which valued-based price when patients are heterogeneous?
«Health Economics»
,
2020
,
pp. 1-14
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