The CE Plane

William C. Black

Medical Decision Making, 1990, vol. 10, issue 3, 212-214

Abstract: The concept of cost-effectiveness is illustrated graphical on the CE plane. Strategies are represented according to their effectiveness (e) and cost (c) relative to those of some reference standard. A straight line with slope K passes through the origin, where K is the maximum acceptable cost-effectiveness ratio. Strategies plotted to the right of line K are cost-effective, while those plotted to the left are not. Furthermore, the most cost-effective of two or more mutually exclusive alternatives is that plotted the greatest distance to the right of K. The CE plane can be used to resolve ambiguities about the meaning of cost-effec tiveness and to illustrate its relevance to medical decision making. Key words: CE plane; cost-effectiveness. (Med Decis Making 1990;10:212-214)

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:sae:medema:v:10:y:1990:i:3:p:212-214

DOI: 10.1177/0272989X9001000308

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