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And it's getting better.

http://www.wired.com/medtech/drugs/magazine/17-09/ff_placebo...

What is more: More expensive placebo works better than cheaper one so price of homeopathic remedies is in some way justified.

Unless you get ill after taking the placebo. This is called the nocebo effect.

Not quite. Placebo response: "I think this will make me better, so I get (or feel) better" Nocebo response: "I think this will make me sick, so I get sick"

Interesting (if somewhat anecdotal) article on the nocebo response in relation to voodoo hexes, etc: http://www.newscientist.com/article/mg20227081.100-the-scien...

I thought I discovered this article via a comment thread on HN last month, but can't seem to find it, now.