Skip to main content

Table 2 Evaluation of treatment and prevention

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

 

Treatment (j = 0)

Prevention (j = 1)

Parameter

(A)

Routine and catch-up (B)

Annual routine only (C)

Demand (Q ji )

sn c

n c if I = 1

1

  

1 if I > 1

 

Cost avoided (CA ji )

c c n c

c c n c

i.c c if I ≤ n c

   

c c n c if I > n c

Price (P j )

1/(sn c )·(c c n c  + B 0 )

1 + r r ψ t 1 r r 1 + n c r r ψ t 1 r r · c c n c + B 1

B 1 + c c · 1 + r r ψ n c 1 r r n c r r ψ t r r r r 1 ψ t r r

Annual sales (S ji )

(c c n c  + B 0 )

P 1 ·n c if i = 1

B 1 + c c · 1 + r r ψ n c 1 r r n c r r ψ t r r r r 1 ψ t r r

  

P 1 if i > 1

Total revenuesa

1 ψ t r m r m · c c n c + B 0

1 ψ t r r r m · 1 + r r 1 + r m · 1 + n c r m ψ t 1 r m 1 + n c r r ψ t 1 r r · c c n c + B 1

1 ψ t r m r m · P 1

  1. aManufacturers’ revenues discounted from the time of launch until the end of the evaluation. See Table 1 for definitions of symbols.