24.2 Running price threshold analysis

In this section, we will run the analysis on the model Markov_PriceThreshold.trex.

With the model open, choose Analysis > Price Threshold Analysis from the menu. Then enter the appropriate settings as in the dialog below.

We will describe what each of those settings in the Price Threshold Analysis here:

• Select price/price discount variable:

  • Use the dropdown menu to choose the price or price discount variable that will be adjusted to find threshold values.

  • In the example above, it’s the price of Treatment 2 (variable price_Tx2).

• Enter price bounds:

  • Set a start, low and high value for the price variable selected.

  • The tool will only look for a threshold within the bounded range.

  • In the example above, price_Tx2 will start at 30,000 and can go as low as 0 and as high as 100,000.

• Select analysis type:

  • Choose the appropriate option for the model type: Expected Value/Cohort Analysis or Patient Simulation.

• Select pair of strategies:

  • Choose the pair of strategies you wish to compare.

  • If the model only contains two strategies, this control will be hidden.

• Select variable sets:

  • Price Threshold tool will run on the default variable values if you have not created additional Variable Sets.

  • If you have created multiple Variable Sets (i.e., Model Scenarios), check the ones you wish to include in the Price Threshold Analysis.

  • At least one variable set is required (which could be the default values).

• Enter list of WTP values:

  • Create a list of WTP values for the analysis (at least 1 entry).

  • The first WTP in the list will default to the value set in Tree Preferences.

• Output Report Settings

  • Check "Show calculation count" to see the number of calculations performed to find the Threshold price (or price discount).

Click OK to run the Price Threshold Analysis with the given settings.