Disclosed is a method for identifying an agent that increases red blood cell levels by contacting an agent with ActRII; adding activin; quantifying the agents efficacy at inhibiting complex formation between ActRII and activin; and evaluating the effect of the agent on red blood cell levels. Further disclosed is the use of an activin-ActRII antagonist in the manufacture of a medicament for treating or preventing anemia, wherein the antagonist is selected from: an antibody that binds to activin and disrupts ActRIIa binding, an antibody that binds to activin and disrupts ActRIIb binding, an anti-activin βA, βB, βC or βE antibody, an anti-ActRIIa antibody, an anti-ActRIIb antibody, follistatin, and inhibin.