Comparison Of Machine Learning, Statistical And Hybrid Methods To Identify Predictors Of Positive Treatment Outcomes In Comorbid Conditions Using Emr Data

Abstract

A101be seen as blocking access. As the marginal cost (MC) of a new product is lower than the charged price there is a well-known waste. One option is to establish a two-part pricing model with a "subscription" price plus a usage price close to MC. The objective of this paper is to provide an economic analysis based on theories and concepts from microeconomics and industrial organization of two-part pricing in the market for patent protected medicines (PPM). Methods: The situation will be analyzed from a game theoretical and an empirical perspective. The starting point is the Swedish Health Care system with focus on oncology. A two-part pricing contractual arrangement will also be discussed for some other EU countries. Results: Demand side consists of a publicly funded local buyer who represents a large number of potential users. This often leads to a bargaining solution where price is below the one set by a standard monopoly. A two-part pricing -where the buyer pays a substantial fixed-fee to get access to the PPM and a per unit price equal to marginal cost -may increase efficiency. However, numerous issues need to be taken into account when considering introducing two-part pricing, for example uncertainty and risk, the operation on many markets, free-riders and reselling. ConClusions: Quantities are unlikely to be efficient with the current pricing model in the Swedish oncological market. A twopart pricing is likely to increase the efficiency in such markets but is also associated with some serious challenges.