<em>Technology Adoption, Quality and Health Care Costs: A Review of the Literature</em> ABSTRACT: This paper provides a review of the literature that has investigated the mechanisms underlying the diffusion of new health care technologies and its implications. The importance of regulation and of the...

type="main" xml:id="rssa12025-abs-0001" <title type="main">Summary</title> <p>We present a Bayes sequential economic evaluation model for health technologies in which an investigator has flexibility over the timing of a decision to stop carrying out research and to conclude that one technology is preferred to another on...</p>

The paper studies the impact of alternative reimbursement systems on two provider decisions: whether to adopt a technology whose provision requires a sunk investment cost and how many patients to treat with it. Using a simple economic model we show that the optimal pricing policy involves a...