PRECISION MEDICINE
DEFINITION: Personalized medicine, also referred to as precision medicine, is a medical model that separates people into different groups—with medical decisions, practices, interventions and/or products being tailored to the individual patient based on their predicted response or risk of disease
We discuss the economic value of personalized medicine and the optimal pricing of the combination products involved. We build on previous work of Egan and Philipson (2015) who stress a link between rational adherence in health care and the value of personalized medicine. Personalized medicine converts experience goods to search goods by speeding up the learning process relative to trial and error. This explains the emergence of personalized medicine in cancer care as well as the timing of this emergence. It also predicts greater innovation-and merger incentives from Disneyland style two-part pricing of the combination products.

READ: https://www.nber.org/system/files/chapters/c13997/c13997.pdf
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Filed under: Experts Invited, Health Economics, Information Technology, Research & Development | Tagged: Egan, NBER, personalized medicine, precision medicine, Thomas Philipson | Leave a comment »













