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Table 1 Summary of terms used in the model

From: Drug versus vaccine investment: a modelled comparison of economic incentives

Term

Definition

B

Budget threshold (regulator)

CA ji

Cost avoided with technology j in year i

c c

Annual cost of the disease per cohort before introduction of a new technology

C ji

Cost associated with developing and selling technology j in year i

d

Number of years after launch used for economic evaluations by the manufacturer

E ji

Incremental quality-adjusted life-years gained from technology j in year i

j

Technology indicator(j = 0 for treatment; j = 1 for prevention)

l

Number of years required to develop technology before launch

M ji

Gross margin for technology j in year i

t

Time horizon in years used for economic evaluation (regulator)

n c

Number of cohorts susceptible to the disease

P ji

Price of technology j in year i

Q ji

Quantity (demand) for technology j in year i

r m

Discount rate used by manufacturer to evaluate investment

r r

Discount rate used by regulator to evaluate new technologies

s

Annual probability of children in susceptible cohorts becoming sick

S ji

Sales of technology j in year i

ψ t ( r )

Discounting factor in the tth year, if the discount rate is r