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Choosing and Eliciting Priors · Tutorial 50 of 696

Priors on Risk Differences and Relative Risks

Learn how risk-difference and relative-risk priors encode different beliefs, respect probability constraints, and translate into priors on treatment and control risks.

Intermediate 11 min read

What You'll Learn

  • Define risk differences and relative risks using treatment and control event probabilities.
  • Determine the feasible support of each effect scale, including boundary cases.
  • Translate priors between effect scales and identify the required baseline-risk information.
  • Calculate an induced risk-difference prior from independent beta priors on event probabilities.
  • Diagnose infeasible or unintentionally informative prior specifications.

Why the Effect Scale Matters

A prior on a treatment effect expresses beliefs about how treatment changes the event probability. But “change” can mean an absolute difference or a multiplicative comparison, and those are not interchangeable descriptions. A 25% relative reduction, for example, corresponds to a larger absolute reduction when the control risk is high than when it is low. The effect scale therefore affects both the clinical interpretation of a prior and the distribution it implies for treatment-arm risks.

Let \(p_C\) denote the event probability under control and \(p_T\) the event probability under treatment. Both are probabilities, so \(0\leq p_C\leq1\) and \(0\leq p_T\leq1\). This tutorial compares priors on the risk difference and the relative risk, focusing on their support and on the dependence between an effect and the baseline risk.

Definition: The risk difference is \(\Delta=p_T-p_C\). Negative values favor treatment when the event is undesirable; positive values indicate a higher event risk under treatment. For \(p_C>0\), the relative risk is \(R=p_T/p_C\). Values below 1 favor treatment for an undesirable event, and values above 1 indicate higher treatment risk. When \(p_C=0\), \(R\) is undefined.

Feasible Support Is Part of the Prior

The probability constraints determine which values of an effect are possible. Because \(p_T\) and \(p_C\) both lie between 0 and 1, the risk difference always lies in \([-1,1]\). But once a particular control risk is specified, its feasible range is narrower:

$$ -p_C \leq \Delta \leq 1-p_C. $$

The lower endpoint corresponds to \(p_T=0\), and the upper endpoint to \(p_T=1\). Thus, a prior for \(\Delta\) cannot be considered separately from its relationship to \(p_C\) if it is to define valid treatment risks. For example, at \(p_C=0.8\), a risk difference of \(0.4\) would imply \(p_T=1.2\), which is impossible.

For \(p_C>0\), the relative risk satisfies \(p_T=Rp_C\). Since \(p_T\) may equal zero, the probability-scale constraints give \(0\leq R\leq1/p_C\). If strictly positive treatment risk is assumed, the lower bound can instead be strict. The upper bound depends on the control risk: when \(p_C=0.2\), \(R\) can be as large as 5, whereas when \(p_C=0.8\), it cannot exceed 1.25. A relative-risk prior independent of baseline risk must therefore be checked against the range of baseline risks it allows.

This dependence is not just a technicality. A prior on \(\Delta\) that is symmetric around zero may require truncation at different points for different values of \(p_C\); a prior on \(R\) centered at 1 also has different feasible upper limits at different control risks. The resulting prior over valid pairs \((p_C,p_T)\) expresses beliefs about both baseline risk and treatment effect.

Worked Example: The Same Relative Effect at Two Baseline Risks

Suppose a hypothetical prior scenario fixes the relative risk at \(R=0.75\), meaning the treatment risk is three-quarters of the control risk. Compare the implications at control risks of 0.20 and 0.40.

At \(p_C=0.20\), the treatment risk and risk difference are

$$ p_T=Rp_C=0.75(0.20)=0.15,\qquad \Delta=p_T-p_C=0.15-0.20=-0.05. $$

This is an absolute reduction of 0.05, or 5 percentage points. At \(p_C=0.40\),

$$ p_T=0.75(0.40)=0.30,\qquad \Delta=0.30-0.40=-0.10. $$

The relative reduction remains 25% in both cases, but the absolute reduction doubles from 5 to 10 percentage points. The arithmetic respects the probability constraints in both scenarios: the implied treatment risks are 0.15 and 0.30, each between 0 and 1.

Translating Between Effect Scales

For a given positive control risk, the two scales are linked by

$$ \Delta=p_C(R-1),\qquad R=1+\frac{\Delta}{p_C}. $$

These equations show why an effect-scale prior cannot generally be translated without specifying or modeling the baseline risk. A fixed relative risk maps to different risk differences as \(p_C\) changes. Conversely, a fixed risk difference maps to different relative risks and can become impossible near the boundaries of the probability scale.

The transformation also changes densities. If \(p_C\) is fixed and a continuous prior has density \(f_R(r)\), then \(\Delta=p_C(R-1)\) has density

$$ f_{\Delta}(\delta)=\frac{1}{p_C}f_R\!\left(1+\frac{\delta}{p_C}\right), \qquad -p_C\leq\delta\leq1-p_C. $$

The factor \(1/p_C\) is the absolute derivative \(\left|dR/d\Delta\right|\). It ensures that the transformed density integrates to one on the corresponding support. When \(p_C\) is itself uncertain, the transformation is joint: a prior for \(p_C\) and \(R\) induces a prior for \(p_C\) and \(p_T\), subject to \(p_T=p_CR\leq1\). In the map \((p_C,R)\mapsto(p_C,p_T)\), the absolute Jacobian determinant is \(p_C\); consequently, for \(p_C>0\),

$$ f_{p_C,p_T}(p_C,p_T) = \frac{1}{p_C}\, f_{p_C,R}\!\left(p_C,\frac{p_T}{p_C}\right). $$

Thus, choosing a prior density on one parameterization and transforming it is not the same as choosing a density with the same algebraic form on another parameterization. This is the general parameterization issue discussed in the earlier material on uniform priors.

Worked Example: A Relative-Risk Prior Constrained by Baseline Risk

Suppose, hypothetically, that the control risk is fixed at \(p_C=0.80\), and an analyst proposes \(R\sim\mathrm{Uniform}(0.5,1.5)\). This prior is not valid as stated: its values above \(1/0.80=1.25\) imply \(p_T>1\).

For example, \(R=1.5\) would imply \(p_T=1.5(0.80)=1.20\), which is not a probability. One possible repair is to truncate the proposed prior to its feasible range, \(0.5\leq R\leq1.25\), and renormalize it. The resulting prior is uniform on that interval, with mean

$$ E(R)=\frac{0.5+1.25}{2}=0.875. $$

Because \(p_C\) is fixed, \(\Delta=0.80(R-1)\), so

$$ E(\Delta)=0.80\{E(R)-1\} =0.80(0.875-1)=-0.100. $$

The truncated prior therefore has a mean risk difference of \(-0.10\), or an average reduction of 10 percentage points. The truncation also makes the prior asymmetric around \(R=1\): the original interval extended equally far above and below 1, but the feasible interval does not. Truncation is a defensible repair only if the resulting change in prior beliefs is acceptable; an analyst could instead specify a prior directly on the feasible scale.

Building a Prior From Arm-Specific Risks

Another option is to specify a joint prior on \(p_C\) and \(p_T\), then derive the prior distribution of \(\Delta\) or \(R\). This makes the probability constraints explicit if each arm probability is supported on \([0,1]\). But it does not automatically encode a desired treatment-effect belief: the induced effect distribution depends on both marginal priors and their dependence.

For example, independent beta priors on the two event probabilities produce a risk difference whose mean and variance can be calculated directly. If \(p_C\sim\mathrm{Beta}(a_C,b_C)\), its mean is \(a_C/(a_C+b_C)\) and variance is \(a_Cb_C/\{(a_C+b_C)^2(a_C+b_C+1)\}\); the same formulas apply to \(p_T\). With independent arm probabilities, the risk-difference variance is the sum of the two variances. Independence is a modeling assumption, not a consequence of using beta distributions.

Worked Example: Induced Risk-Difference Prior From Beta Priors

Consider hypothetical independent priors \(p_C\sim\mathrm{Beta}(8,32)\) and \(p_T\sim\mathrm{Beta}(6,34)\). Both are proper distributions supported on probabilities from 0 to 1, and the assumed independence defines a joint prior for the two risks.

The prior means are

$$ E(p_C)=\frac{8}{40}=0.200,\qquad E(p_T)=\frac{6}{40}=0.150. $$

Therefore the mean risk difference is

$$ E(\Delta)=E(p_T)-E(p_C)=0.150-0.200=-0.050. $$

The arm-specific variances are

$$ \operatorname{Var}(p_C)=\frac{8(32)}{40^2(41)} =\frac{256}{65600}=0.003902, $$
$$ \operatorname{Var}(p_T)=\frac{6(34)}{40^2(41)} =\frac{204}{65600}=0.003110. $$

Independence gives \(\operatorname{Cov}(p_T,p_C)=0\), hence

$$ \operatorname{Var}(\Delta) =\operatorname{Var}(p_T)+\operatorname{Var}(p_C) =0.003902+0.003110=0.007012, \qquad SD(\Delta)=\sqrt{0.007012}=0.08374. $$

The induced risk difference has support \([-1,1]\), since each probability is between 0 and 1. Its mean is a reduction of 5 percentage points, and its prior standard deviation is about 8.37 percentage points. These summaries alone do not determine the probability that treatment is beneficial, \(P(\Delta<0)\); that probability depends on the full induced distribution, not only its mean and variance.

Choosing and Checking an Effect Scale

The risk difference and relative risk answer distinct clinical questions. The risk difference describes the absolute change in event probability and is often directly connected to numbers of events prevented or caused. The relative risk describes a proportional comparison and may align better with beliefs that a treatment has a similar proportional effect across settings. Neither scale is universally preferable: the scientifically meaningful prior depends on the clinical context and on what experts can reasonably judge.

Prior scaleDirect interpretationKey support issueTranslation concern
Risk difference \(\Delta\)Absolute change in event probability\([-1,1]\) overall; \([-p_C,1-p_C]\) at fixed \(p_C\)A fixed \(\Delta\) implies different \(R\) as \(p_C\) changes
Relative risk \(R\)Ratio of treatment to control event probabilities\([0,1/p_C]\) for \(p_C>0\)A fixed \(R\) implies different absolute changes as \(p_C\) changes
Joint prior on \(p_C,p_T\)Beliefs about each arm's event riskBoth risks must lie in \([0,1]\)The induced effect prior depends on marginal beliefs and their dependence

Before using either effect prior, check its implied distribution on the probability scale. Examine representative baseline risks, the implied \(p_T\), and prior probabilities of clinically important benefit or harm. If a prior is truncated to enforce feasibility, inspect the resulting distribution after truncation rather than relying on its untruncated description. For a joint prior, check dependence as well as each marginal distribution: dependence can substantially alter the spread of \(p_T-p_C\).

Common Mistakes and Limitations

  • Using \(R>0\) as the only relative-risk constraint. If \(p_C>0\), \(R=0\) is possible when \(p_T=0\), and \(R\) cannot exceed \(1/p_C\). Check both bounds.
  • Treating an effect prior as baseline-free. Converting between \(R\) and \(\Delta\) requires \(p_C\). If baseline risk is uncertain, the induced prior on the other scale depends on its distribution and its relationship to the effect.
  • Assuming equal-looking priors encode equal beliefs. A uniform prior on one scale does not generally transform to a uniform prior on another. Compare the implied quantities on the clinical probability scale.
  • Truncating without reassessing. Restricting an infeasible prior changes its mass and may shift its mean or asymmetry. Quantify those changes before treating truncation as a harmless adjustment.

A limitation of either single-scale specification is that it emphasizes one type of comparison. If clinicians can articulate beliefs about absolute changes but the analysis uses a relative-risk prior, translation requires baseline-risk assumptions that may add uncertainty. Conversely, an absolute-effect prior may not reflect beliefs that proportional effects are stable across populations. The appropriate response is not to hide this choice, but to state it and assess the prior implications on both scales.

Check Your Understanding

Answer each question, then compare with the solutions.

  1. If \(p_C=0.25\) and \(R=0.60\), calculate \(p_T\) and \(\Delta\), and interpret the difference in percentage points.
  2. For \(p_C=0.70\), what is the largest feasible relative risk? Explain why \(R=1.5\) is invalid.
  3. Suppose \(p_C=0.30\) and \(\Delta=-0.12\). Calculate \(R\), and state the condition needed for this translation.
  4. Why does independence of \(p_C\) and \(p_T\) matter when calculating the variance of their difference?

Solutions. (1) \(p_T=0.60(0.25)=0.15\), so \(\Delta=0.15-0.25=-0.10\): a 10-percentage-point reduction. (2) The upper bound is \(1/p_C=1/0.70\approx1.429\). \(R=1.5\) would imply \(p_T=1.5(0.70)=1.05\), outside the probability range. (3) Since \(p_C>0\), \(R=1+\Delta/p_C=1-0.12/0.30=0.60\). (4) In general, \(\operatorname{Var}(p_T-p_C)=\operatorname{Var}(p_T)+\operatorname{Var}(p_C)-2\operatorname{Cov}(p_T,p_C)\). Independence sets the covariance to zero; without that assumption, the variance cannot be found by simply adding the marginal variances.

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