
198 Bayesian Methods in Health Economics
functions of random quantities, which induces a full posterior distribution
accounting for the uncertainty in the economic model. As usual, this auto-
matically produces a framework for PSA that is particularly straightforward
to run, once the Bayesian model has been put in place.
To give an example, we consider here a simplified version of the MM
presented in Cooper et al. (2004). The structure of the problem is pre-
sented in Figure 5.15. The relevant population is represented by patients with
metastatic breast cancer and surviving an initial cycle of treatment with two
different chemotherapy drugs. Doxorubicin ...