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The {{w|placebo}} effect refers to the phenomenon in which patients given an inactive treatment such as a sugar pill can still show improvement relative to an untreated patient. The placebo effect is thus very important to consider when testing new drugs, since even ineffective drugs can have a positive effect on the patients due to the placebo effect. Modern drug experiments are hence conducted as {{w|Blind experiment#Double-blind trials|double-blind trials}}, where the patients are randomly given either the treatment or a placebo without either they or the administering doctors knowing who receives the new drug and who received the placebo pill. (It is important that the doctor does not know, as if they did, it may affect the way they interact with the patient.)
 
The {{w|placebo}} effect refers to the phenomenon in which patients given an inactive treatment such as a sugar pill can still show improvement relative to an untreated patient. The placebo effect is thus very important to consider when testing new drugs, since even ineffective drugs can have a positive effect on the patients due to the placebo effect. Modern drug experiments are hence conducted as {{w|Blind experiment#Double-blind trials|double-blind trials}}, where the patients are randomly given either the treatment or a placebo without either they or the administering doctors knowing who receives the new drug and who received the placebo pill. (It is important that the doctor does not know, as if they did, it may affect the way they interact with the patient.)
  
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Generally the patients need to believe that they are receiving an active treatment, but one [http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0015591 study] showed that the effect can occur even if the patients are told that they are receiving a placebo pill. The key factor seems to be that the patients must believe that a positive effect will occur. For example, (1) patients experience a greater effect if they believe that the treatment is expensive and (2) patients who know that they have not been given an active treatment will experience the effect if they are told that placebos can have a positive effect through the power of the mind. Furthermore, the placebo can increase the effectiveness of treatments which ''seem'' larger (this is why over-the-counter pain medication is often administered as two half-doses rather than just one full dose).
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Generally the patients need to believe that they are receiving an active treatment, but one [http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0015591 study] showed that the effect can occur even if the patients are told that they are receiving a placebo pill. The key factor seems to be that the patients most believe that a positive effect will occur. For example, (1) patients experience a greater effect if they believe that the treatment is expensive and (2) patients who know that they have not been given an active treatment will experience the effect if they are told that placebos can have a positive effect through the power of the mind. Furthermore, the placebo can increase the effectiveness of treatments which ''seem'' larger (this is why over-the-counter pain medication is often administered as two half-doses rather than just one full dose).
  
 
Several reasons for the placebo effect have been proposed, from study artifacts - such as under-reporting of negative outcomes by patients who think they are being treated, to neurological explanations for how mental state can translate into physical outcomes.
 
Several reasons for the placebo effect have been proposed, from study artifacts - such as under-reporting of negative outcomes by patients who think they are being treated, to neurological explanations for how mental state can translate into physical outcomes.

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