Cost effectiveness analysis If one treatment is both cheaper and more effective than a second treatment,then the second treatment is said to be dominated by the first. It is never optimal to use a dominated treatment, because there is always a more effective and cheaper alternative available. Bhattacharya,Hyde and Tu-HealthEconomics Bhattacharya, Hyde and Tu – Health Economics Cost effectiveness analysis • If one treatment is both cheaper and more effective than a second treatment, then the second treatment is said to be dominated by the first. • It is never optimal to use a dominated treatment, because there is always a more effective and cheaper alternative available