Decide vaccine prices and subsidies for developing countries

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Title: Decide vaccine prices and subsidies for developing countries
Author: Zhang, Wenbo
Abstract: Vaccination has been deemed the most cost-effective way to fight against preventable diseases and improve global health. In recent years, expensive combination vaccines which provide multiple antigens in a single shot have been developed to replace traditional monovalent vaccines and have become the preferred choice of healthcare systems in industrialized countries. High prices have not only barricaded low-income countries from accessing combination vaccines but also lure vaccine manufacturers to shift their production capacity from making traditional vaccines to combination vaccines. Such a shift could eventually lead to shortages on the vaccine supply for low-income countries. This work extends the ABP model proposed by Proaño which optimally prices vaccines under tiered pricing strategy to make them affordable and available across different market segments. This thesis first introduces a heuristic method to solve the ABP. Second, this thesis presents an optimization model to decide the minimum amount of subsidy needed to make an expensive combination vaccine affordable to people in a low-income country.
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Date: 2011-06-30

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