Cost effectiveness analysis If neither treatment is dominant,one treatment must be both more expensive and more effective. In such cases,cost-effectiveness analysis is used to help people decide whether the extra expenditure is worth it. Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics Cost effectiveness analysis • If neither treatment is dominant, one treatment must be both more expensive and more effective. • In such cases, cost-effectiveness analysis is used to help people decide whether the extra expenditure is worth it