"The Power of Price". An analysis of Chapter 10 in Dan Arielys "Predictably Irrational", showing why our minds have a lot of power over how effective our medicine is.

Essay by madore9College, UndergraduateA, February 2010

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"The Power of Price"In Chapter 10 "The Power of Price" Ariely discusses how the price of medications can impact how effective it is. Through many experiments Ariely found that more often than not placebos were just as effective as the real thing. The placebo effect is well known. Placebos can actually trigger endorphins and other reactions in your body to make you feel better; it isn't a myth. The prices of medications also affect their performance, with the more expensive usually performing better. This shows how big of an impact expectations can have on us. It also shows that we put too much into how much material goods cost. However, it is understandable that people want to think they're getting the best treatment when it comes to their health. We just need to realize that we need a better basis for performance other than dollar signs. The purpose behind writing this chapter was to make us realize how much prices have an impact on us; whether we realize it or not.

We need to stop assuming that price is equal to quality.

For one of his experiments Ariely he had a woman dress up in a lab coat and hand out a pain killer. This pain killer was called Veladone-Rx; and it was completely made up. The amazing pain killer was nothing but a white Vitamin C pill. This woman told patients that 92% people reported relief for up to 8 hours and in as fast as 10 minutes. The results of this experiment are kind of scary. Majority of the patients reported relief when they were told that it was $2.50 per dose. When the pain killer was said to be $0.10 a dose only half of the patients reported relief. And the more pain someone experienced, the stronger...