This highly successful textbook is now available in its third edition‎.‎ Over the years it has become the standard textbook in the field world‎-wide‎.‎ It mirrors the huge expansion of the field of economic evaluation in health care‎,‎ since the last edition was published in 1997‎.‎ This new edition builds on the strengths of previous editions‎,‎ being clearly written in a style accessible to a wide readership‎.‎ Key methodological principles are outlined using a critical appraisal checklist that can be applied to any published study‎.‎ The methodological features of the basic forms of analysis are then explained in more detail with special emphasis of the latest views on productivity costs‎,‎ the characterisation of uncertainty and the concept of net benefit‎.‎ The book has been greatly revised and expanded especially concerning analysing patient‎-level data and decision‎-analytic modelling‎.‎ There is discussion of new methodological approaches‎,‎ including cost effectiveness acceptability curves‎,‎ net benefit regression‎,‎ probalistic sensitivity analysis and value of information analysis‎.‎ There is an expanded chapter on the use of economic evaluation‎,‎ including discussion of the use of cost‎-effectiveness thresholds‎,‎ equity considerations and the transferability of economic data‎.‎ This new edition is required reading for anyone commissioning‎,‎ undertaking or using economic evaluations in health care‎,‎ and will be popular with health service professionals‎,‎ health economists‎,‎ pharmacand health care decision makers‎.‎ It is especially relevant for those taking pharmacoeconomics courses‎.‎