Dec 3, 2010

Expensive Effective Placebos

The more expensive your pain medications are, the better the relief you get from taking them, even if they are fake. That's according to a study published in the Journal of the American Medical Association, which suggests that sugar pills labeled as expensive drugs relieve pain better than sugar pills labeled as discounted drugs.

According to the authors, marketing actions, such as pricing, can alter the actual efficacy of products to which they are applied. In three experiments, the authors show that consumers who pay a discounted price for a product may derive less actual benefit from consuming this product than consumers who purchase and consume the exact same product, but pay its regular price.