Bayesian cost-effectiveness analysis from clinical trial data

A key tool for assessing the relative cost-effectiveness of two treatments in health economics is the incremental C/E acceptability curve. We present Bayesian computations for this curve in the case where data on both costs a nd efficacy are available from a clinical trial. Analysis is given under va rious formulations of prior information. A case study is analysed in which reasonable prior information is shown to strengthen substantially the poste rior inference, leading to a more conclusive assessment of cost-effectivene ss. Calculations can be performed using readily available Bayesian software . Copyright (C) 2001 John Wiley & Sons, Ltd.