In this article, we model the relationship between a health authority and a pharmaceutical firm when the real efficacy … of the drug manufactured by the firm is uncertain. The ex-ante information on the efficacy of the new drug is pro … unit price regardless of the ex-post real effectiveness of the drug (traditional contract, i.e. no risk sharing …

Advocates of a new federal comparative-effectiveness agency argue that such information has characteristics of a public … that government should provide comparative-effectiveness research, nor that government provision would increase social … health insurance and medical professionals, inhibit the types of health plans best equipped to generate comparative-effectiveness …

note we present a specific risk sharing agreement on effectiveness and show how such mechanism is going to affect the … market in the long run. In particular, we will show how the regulator may create a trade off between expected efficacy and …

effectiveness of the drug (i.e. the efficacy resulted in the real medical practice). We assume that the probability of being listed … price is set according to the declared efficacy of the new drug, but if ex post the effectiveness falls short of what … (approved and reimbursed) depends on the relative performance of the new drug in terms of effectiveness and budget required. The …