More Expensive Pills Work Better, Right?

This MIT study suggests that a placebo at $2.50 per pill relieves pain better than one priced at $0.10 per pill.

Incidentally, it looks like the same is true for wine--the same wine priced more expensively tastes better.

My ass hurts just thinking about the larger macroeconomic consequences of this conclusion.

Good luck explaining cost effectiveness to these folks.