Treatment Effectiveness and Side Effects: A Model of Physician Learning

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Treatment Effectiveness and Side Effects: A Model of Physician Learning

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title Treatment Effectiveness and Side Effects: A Model of Physician Learning
contributor.author Chan, T.
contributor.author Narasimhan, C.
contributor.author Xie, Ying
description.abstract In this paper we study how treatment effectiveness and side effects impact the prescription decision of a risk averse physician, and how detailing and patient feedback help reduce the physician's uncertainty in these two attributes in the erectile dysfunction category. To separately identify the impacts of effectiveness and side effects, we augment the observed prescription choices with unique data on self-reported reasons for switching in our estimation. Results show that the two new drugs Levitra and Cialis have higher mean effectiveness than the existing drug Viagra, but physicians have large uncertainty regarding the effectiveness for Levitra and side effects for Cialis. Detailing is effective in reducing the uncertainty for effectiveness but much less so for side effects. Based on the results, we investigate the roles of effectiveness and side effects in physicians' prescription choices, and the importance of detailing for new entrants in competing with incumbent drugs.
identifier.citation Chan, T., C. Narasimhan, and Y. Xie. 2013. "Treatment effectiveness and side effects: A model of physician learning." 59(6): 1309-1325
identifier.issn 0025-1909
identifier.uri http://dx.doi.org/10.1287/mnsc.1120.1640
identifier.uri http://hdl.handle.net/10735
identifier.volume 59
identifier.issue 6
identifier.startpage 1309
subject Advertising
subject Multiple-dimensional learning
subject New products
subject Pharmaceutical industry--Marketing
date.issued 2013-06-01
date.submitted 2011-09-16
rights
language.iso en
source.journal Management Science

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