Research on Drug Centralized Quantity Purchase Model Based on Patient Brand Preference

This paper constructs a drug procurement market composed of an original research drug company and a generic drug company in an environment dominated by government management departments. The Stackelberg game model is used to study the impact of patient brand preference on drug sales prices and social welfare under different procurement modes. Finally, a numerical simulation is carried out to analyze the sensitivity of patient brand preference and scale economy coefficients. The research results show that the unit production cost gap between the two pharmaceutical companies has a certain impact on the optimal decision-making of the government and pharmaceutical companies. When the patient brand preference is small or the scale economy coefficient is large, the government should implement a centralized drug procurement model. Otherwise, no centralized procurement model is optimal.