A placebo is something, such as a substance or procedure, that has no inherent ability to directly produce an effect of interest, but which can nevertheless produce this effect indirectly, generally through a psychological response. Most commonly, the term “ placebo ” is used in the medical context, to refer to an inert substance (e.g., a sugar pill) with no active ingredients or to a similar type of treatment, which leads to positive outcomes for patients (e.g., reduced pain) despite ... What is the placebo effect? The placebo effect is a phenomenon where people experience benefits from a medical intervention, like a pill or procedure, if they expect that it will work. The placebo effect is when a person improves despite receiving a placebo instead of active treatment. Learn how psychology, expectations, and conditioning may explain the placebo effect and see examples from real studies.