The cure effect: Individuals demand universal access for health treatments that claim to eliminate disease symptoms

The present research documents a cure effect, whereby individuals are more likely to demand affordable prices when health treatments (e.g., drugs, medications, therapies) claim to eliminate (vs. reduce) disease symptoms. This preference for low-priced "cures" contradicts the fundamental premise of value-based pricing, which would expect individuals to tolerate higher prices for cures because they are putatively more effective and therefore more valuable. Five studies with over 2,500 participants provide robust evidence for the cure effect and show that it occurs because individuals judge a health treatment's acceptable price by focusing predominantly on its communal value rather than its market value. Given that cures are associated with maximal effectiveness, they are disproportionately endowed with communal value and more likely to yield price judgments that reflect concerns about universal access. (PsycInfo Database Record (c) 2023 APA, all rights reserved).