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February 2, 2026Mathematics0 citationsOpen Access

Solving Vaccine Pricing Models Considering Quantity Discounts and Equity Using Global Optimization Methods

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JTJung Fa TsaiCLChung-Chang LinYHYating Huang

Key Points

  • The study aims to develop optimal vaccine pricing strategies that address quantity discounts and distribution equity.
  • Employs global optimization techniques
  • Utilizes a mathematical programming model
  • Incorporates/payment capacities of member countries
  • Reduces binary variables for computational efficiency
  • Analyzes data from the Vaccine Alliance and PAHO.
  • Reduces computation time by over 30% on average
  • Effectively controls price differentiation across pricing tiers
  • Enhances fairness in vaccine distribution.

Abstract

This study employs global optimization techniques to examine optimal vaccine pricing strategies that consider quantity discounts and vaccine distribution equity, under centralized procurement by group purchasing organizations. Based on the economic characteristics of the vaccine market, a mathematical programming model incorporates the payment capacities and willingness to pay of different member countries, minimizing the maximum adjusted price disparities across pricing tiers and thereby enhancing the overall fairness of vaccine distribution. To further reduce computational complexity and enhance practical applicability, this study improves the model by reducing the number of binary variables. Experimental analysis is conducted using real-world data from the Vaccine Alliance (Gavi) and the Pan American Health Organization (PAHO). The results show that the improved model reduces computation time by over 30% on average and demonstrates effective control over price differentiation across various pricing tiers and parameter settings.

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Cite This Study

Tsai et al. (2026) studied this question.

synapsesocial.com/papers/6980ff49c1c9540dea81236ehttps://doi.org/10.3390/math14030496
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