Physical Sciences and Mathematics Commons^™

Procuring Pediatric Vaccines In A Two-Economy Duopoly, Seongeun Lee, Susan E. Martonosi

Scripps Senior Theses

In this work, we aim to present an optimization model for vaccine pricing in a two-economy duopoly. This model observes the price dynamics between a high income country and a low income country that procure vaccinations through PAHO. This model is formulated to provide insights on optimal pricing strategy for PAHO to ultimately increase vaccine accessibility to low income countries. The objective is to satisfy the public demand at the lowest price possible, while providing enough profit for the vaccine manufacturers to stay in business. Using non-linear integer programming, the model results show that cross-subsidization occurs in PAHO vaccine procurement.