In this course, we present the theory of medical decision making from a health economics perspective. In the first part of the course, the focus is on prescriptive theory. We combine informative test theory with the expected utility hypothesis to derive thresholds for treatment decision under diagnostic and therapeutic risk. Furthermore, the cost of treatment is incorporated in the analysis. In the second part, principle-agent models will be presented which are concerned with the implementation of optimal medical decision making in the presence of asymmetric information. The focus is on financial incentives which give proper incentives to use diagnostic tests and to provide adequate treatment.
Local Coordinator: Patrik Gasser
Registration (see course list)