Placebo has been found to have beneficial effects in many psychoneurological conditions like pain, depression, Parkinson’s disease and many others. It can be conceptualized as healing power of mind. The effect has been seen in clinical trial as well as clinical practice settings. Alternative therapies with elaborate rituals and distinct environmental cues can have pronounced and clinically significant placebo effect. It is imperative to study the placebo phenomenon from basic science, clinical trial and ethical perspectives to better understand how placebo operate in clinical settings. Neurobiologically, they have been found to be due to release of endogenous opioids and dopamine. Dopamine has also been studied to be central to mechanism of attention and working memory in human beings. It has been imperative that intact consciousness, preserved mental faculties and moderate pathological dysfunction are needed for demonstration of pathological effect. However, a negative interaction has been studied between drug and placebo and in some cases effect of active drug decreases with increasing placebo effect. This indicates that effects of placebo and active intervention may not be simply additive, and we need to quantify placebo effect which can be best done when compared to no-treatment. It would be unethical to recruit no-treatment group in diseased conditions. It has been evidenced earlier that deceptive administration of placebo simulated clinical situations in that subjects were led to believe that they were receiving an active drug. In contrast, subjects in double-blind conditions were aware that they might receive a placebo. Double-blind and deceptive administration of the placebo produced different results in studies of mood, blood pressure and heart rate. However, placebo compared to no-treatment has not been studied.  Moreover, response to reward mechanisms of placebo effect may be different in healthy and diseased states. Thus, this study has been planned to study and measure the true effects of placebo in healthy human volunteers.