Threshold Price Research Articles

Large fluctuations in locational marginal prices.

This paper investigates large fluctuations of locational marginal prices (LMPs) in wholesale energy markets caused by volatile renewable generation profiles. Specifically, we study events of the form [Formula: see text] where LMP is the vector of LMPs at the n power grid nodes, and α-, [Formula: see text] are vectors of price thresholds specifying undesirable price occurrences. By exploiting the structure of the supply-demand matching mechanism in power grids, we look at LMPs as deterministic piecewise affine, possibly discontinuous functions of the stochastic input process, modelling uncontrollable renewable generation. We use techniques from large deviations theory to identify the most likely ways for extreme price spikes to happen, and to rank the nodes of the power grid in terms of their likelihood of experiencing a price spike. Our results are derived in the case of Gaussian fluctuations, and are validated numerically on the IEEE 14-bus test case. This article is part of the theme issue 'The mathematics of energy systems'.

Preferences for herpes zoster vaccination among adults aged 50 years and older in the United States: results from a discrete choice experiment

ABSTRACT Background: Most adults, and disproportionately fewer African-Americans, have not received herpes zoster (HZ) vaccination despite current recommendations. This study (GSK study identifiers: 208677/HO-17-18066) assessed HZ vaccination preferences among adults aged ≥ 50 years. Research design and methods: In this discrete choice experiment, respondents chose among a ‘no vaccine’ option and two HZ vaccine profiles, characterized by seven attributes, in a series of choice questions. Random-parameters logit results were used to predict likely vaccine uptake. Subgroup and latent class analysis of African-American’s preferences were performed. Results: The preference weight for choosing HZ vaccines over no vaccine was statistically significant among the 1,454 respondents (71.9% whites; 25.2% African-Americans). Out-of-pocket (OOP) cost and vaccine effectiveness (VE) were the most important attributes. The African-American and the non-African-American subgroups had statistically significant differences in preferences (χ2 = 59.91, p < 0.001), mainly driven by OOP cost and VE. Latent class analysis identified three groups of African-American respondents with systematically different preferences; two comprised likely-vaccinators, with one being more cost sensitive at lower price thresholds, and one likely non-vaccinators. Conclusions: For all respondents, HZ vaccine choices were most sensitive to total OOP cost, followed by VE. PLAIN LANGUAGE SUMMARY Herpes zoster, or shingles, is a viral disease characterized by a painful, localized skin rash. It affects approximately 32% of US citizens at least once in their lifetime. The risk of contracting shingles increases with age. Most American adults over 50 years have not received the shingles vaccine, and vaccination rates are especially low for African-Americans. This is the first study to evaluate what drives shingles vaccination decisions among US adults ≥ 50 years of age. We also assessed the differences between African-American and non-African-American adults, and inside the African-American group. In this choice experiment, 1,454 people ≥ 50 years completed a survey of eight choice questions, as well as questions on their previous experiences with vaccines, socioeconomic, and demographic characteristics. Seven factors were evaluated. We found that American adults preferred to get vaccinated, and the most influential factors were costs and vaccine effectiveness while location of vaccination was the least important. There were differences in preferences between African-American and non-African-American adults, mainly driven by costs and vaccine effectiveness. Three different groups of African-American adults with systematically different preferences could be identified; two were likely to vaccinate, with one being more cost sensitive at lower price thresholds, and the third was unlikely to vaccinate. Decisions on shingles vaccination appear to be mostly driven by costs, which could be a barrier to those who do not have appropriate insurance, especially among some African-Americans. However, healthcare professionals should continue to educate patients on other vaccine characteristics, as they also influence vaccination decisions.

Price Sensitivity Measurement: A Yield Management Approach

The purpose of this paper is to investigate and identify the potential revenue losses, at price points determined by price sensitivity measurement, between actual revenue and potential revenue that can be gained, in terms of yield management. A case study was carried out in a 5 star hotel business in Aydın, Turkey. In the study, a questionnaire was conducted to determine price resistance levels, price threshold limits, price sensitivity levels and price perceptions based on the room quality perceptions of the tourists visiting the hotel business. Also, an interview was performed with the accounting manager and the front office manager about the room prices determined. Hotel businesses can determine the optimal price by depending on the quality and value perception of the customers; thus they can use their limited capacity more efficiently so that they can maximize yield. This study showed that the hotel business lost room revenue at all points calculated. The hotel business suffered a potential loss of 35-40% because of the high occupancy rate in July and August. The hotel industry could have room sales revenues much more than the actual room sales revenues, especially if the agency commission expenses can be reduced.

Does Cost-Effectiveness Analysis Overvalue Potential Cures? Exploring Alternative Methods for Applying a “Shared Savings” Approach to Cost Offsets

ObjectivesTo evaluate alternative methods to calculate and/or attribute economic surplus in the cost-effectiveness analysis of single or short-term therapies. MethodsWe performed a systematic literature review of articles describing alternative methods for cost-effectiveness analysis of potentially curative therapies whose assessment using traditional methods may suggest unaffordable valuations owing to the magnitude of estimated long-term quality-adjusted life-year (QALY) gains or cost offsets. Through internal deliberation and discussion with staff at the Health Technology Assessment bodies in England and Canada, we developed the following 3 alternative methods for further evaluation: (1) capping annual costs in the comparator arm at $150 000 per year; (2) “sharing” the economic surplus with the health sector by apportioning only 50% of cost offsets or 50% of cost offsets and QALY gains to the value of the therapy; and (3) crediting the therapy with only 12 years of the average annual cost offsets or cost offsets and QALY gains over the lifetime horizon. The impact of each alternative method was evaluated by applying it in an economic model of 3 hypothetical condition-treatment scenarios meant to reflect a diversity of chronicity and background healthcare costs. ResultsThe alternative with greatest impact on threshold price for the fatal pediatric condition spinal muscular atrophy type 1 was the 12-year cutoff scenario. For a hypothetical one-time treatment for hemophilia A, capping cost offsets at $150 000 per year had the greatest impact. For chimeric antigen receptor T-cell treatment of non-Hodgkin’s lymphoma, capping cost offsets or using 12-year threshold had little impact, whereas 50% sharing of surplus including QALY gains and cost offsets greatly reduced threshold pricing. ConclusionsHealth Technology Assessment bodies and policy makers will wrestle with how to evaluate single or short-term potentially curative therapies and establish pricing and payment mechanisms to ensure sustainability. Scenario analyses using alternative methods for calculating and apportioning economic surplus can provide starkly different assessment results. These methods may stimulate important societal dialogue on fair pricing for these novel treatments.

Using dispatchable energy price to influence renewable penetration in chemical production

The use of dispatchable energy in a renewable power system plays an important role. Thus, it is of interest to explore the impact of dispatchable energy prices from both economic and environmental perspectives. In this work, we present a quantitative analysis using a fully electrified methanol process located in Kramer Junction, USA, and Norderney, Germany as two case studies to report the correlation between the dispatchable energy price and renewable penetration in the methanol production. The correlation is governed by the optimal economic potential, which is optimised using nonlinear programming. It is found that the resulting renewable penetration exhibits a two-regime behaviour: it increases dramatically at the beginning and then slowly approaches 100% when the dispatchable energy price is above a critical point. The critical dispatchable energy price in Kramer Junction is found to be 220 $/MWh with a corresponding renewable penetration level of 64%, whereas it is approximately 180 $/MWh and 86% for Norderney. There also exists a threshold price of 162 and 65 $/MWh respectively for Kramer Junction and Norderney, below which no renewable energy would be implemented due to a lack of economic incentive. The correlation suggests that the price of dispatchable energy can be used to predict or influence the renewable penetration in a renewable power system, provided that the system aims to achieve the economic optimality.

Detection and prevention of Phishing Attacks

Phishing is one amongst the main issues visaged by cyber-world and ends up in monetary losses for each industries and people. Detection of phishing attack with high accuracy has forever been a difficult issue. At present, visual similarities-based techniques square measure terribly helpful for police work phishing websites expeditiously. Phishing web site appearance terribly similar in look to its corresponding legitimate web site to deceive users into basic cognitive process that they are browsing the right web site. Visual similarity primarily based phishing detection techniques utilize the feature set like text content, text format, HTML tags, Cascading sheet (CSS), image, then forth, to form the choice. These approaches compare the suspicious web site with the corresponding legitimate web site by victimisation numerous options and if the similarity is larger than the predefined threshold price then it is declared phishing [2].

The impact of country of origin on consumers' pricing judgments in ecommerce settings

PurposeThe purpose of this paper is to assess the impact of country-of-origin (COO) cues and pricing perspective based on the third-party seller's name, intermediary, on consumers' purchasing decisions on e-commerce sites. A model was proposed to investigate consumers' perception toward sellers' online reputation, the mediating role of trust between the reputation of third-party sellers and attitude toward e-commerce as an intermediary, and attitude toward third-party sellers. In addition, this study also looks at the pricing threshold of consumers who are willing to buy from a third-party seller that has a negative COO cue, which is an area that has received limited attention in e-commerce studies.Design/methodology/approachThe paper opted for an experimental study using survey data gathered from general American consumers. Two studies were conducted. One hundred seventy surveys were gathered for study 1, and 171 surveys were gathered for study 2. The two studies had two product snippets which showed an Amazon product page with a list of third-party sellers. For study 2, all variables were kept the same – reviews and ratings for both products and sellers, delivery time, descriptions, e-commerce as an intermediary and brand of a bag – except for the price.FindingsThe findings showed that consumers' perceived reputation of a third-party seller has a positive impact on their attitude toward the seller and toward the e-commerce intermediary. In addition, the role of a positive COO influences attitudes and intentions. However, this influence is moderated by price when price is noticeably higher when compared to an alternative option provided by a seller from a country with a lower COO evaluation. This study suggests that the benefits of a positive COO diminish when a seller with a lower COO evaluation is able to provide a lower price for the product. In study 1, the results show that positive COO trumps negative COO. In study 2, the result shows that consumers lean toward a lower-price product and disregard their evaluation toward the COO. Furthermore, in study 2, results show that in order for the pricing to offset the negative COO attributes of a third-party seller, the price needs to be within 22–30% lower than the American seller's product pricing.Research limitations/implicationsWith the chosen research approach, the research results may lack generalizability for the other markets (e.g. Asian consumer market). Therefore, researchers are encouraged to test the proposed propositions further.Originality/valueThis study highlights the implications of COO cues such as sellers' names and how they impact consumers' willingness to purchase a product. The second study investigates consumers' willingness to purchase when the pricing for a product sold by a negative COO seller versus a positive COO seller is different in an e-commerce environment. In addition, the second study determines that the role of trust has more impact on consumers' attitude toward a third-party seller than it has on their attitude toward the e-commerce intermediary.

Who Gains from Housing Market Stimulus? Evidence from Homeowner Grants with Threshold Prices

Governments utilize home ownership schemes for the dual purpose of alleviating housing affordability and stimulating housing construction. This paper studies how the housing market responds to assistance policies by exploiting a natural experiment in Sydney, Australia, where buyers of new homes priced up to $600,000 were eligible for government subsidies between July 2010 and June 2012. We find this policy causes large distortions to the sales volume, price level, as well as area size of home transactions. Specifically, we find a large bunching just below the threshold price of $600,000, over 8 times of counterfactual density. This large bunching is from both buyers moving down the price range as well as new entrants attracted to the market by the policy. We also find new homes just below the threshold are associated with an overpricing of about $3,000, offsetting up to 56% of the received benefit. Further, we find homes are about 25% smaller in size than comparable homes in prior periods. Last, we document a wealth effect generated by these housing subsidies, where neighborhoods that receive more housing subsidies increase their new car purchases. Overall, our study sheds light on the effectiveness and externalities of housing stimulus in the form of subsidies to improve homeownership.

Modifying ORB trading strategies using particle swarm optimization and multi-objective optimization

Opening range breakout (ORB) is a well-known trading strategy in which predetermined price thresholds are used to characterize price movements. However, some researchers have noted that ORB does not make full use of market characteristics and fails to define a cogent closing strategy. Several modified ORB strategies have been optimized using grid-wise algorithms; however, those methods operate within a discrete limited solution space. In this study, we use the particle swarm optimization algorithm to create a scalable and continuous optimization algorithm, referred to as PORB. We also adopt the Pareto optimal in the creation of a multi-objective optimization algorithm, referred to as MPORB. Experiment results demonstrate that PORB significantly outperformed the benchmark strategies (GAORB and the original ORB) in trading performance and time efficiency. A PORB with stop-loss closing strategy slightly improves profitability and greatly reduces the risk of drawdown. The performance of MPORB is similar to that of PORB; however, in some cases it falls somewhat short. Overall, the scalable and continuous PORB strategy proposed in this study is shown to overcome the limitations of previous solutions. The implementation of Pareto multi-objective optimization in PORB is shown to enhance trading performance without increasing time complexity.

Pricing of Special-Shaped Pearl Pendant Based on GABORGRANGER

In order to gain high innovation value profit of special-shaped pearl pendant on the market, the optimum price of such new product was confirmed in the work using GABOR-GRANGER. Firstly, 200 target consumers were selected for the cluster analysis of their attitudes toward baroque pearls. Then, GABOR-GRANGER was applied to calculate the fake income and price threshold of set price point. Last, it was determined the lower limit of 95% confidence bounds of the maximum value of fake income as the conservative optimal price. Results show that the main target consumer groups were not concerned about the price because of the singular and beautiful shape of pearl. Through calculation by Granger Gabor, the optimal price of special-shaped pearl pendant was higher 60.8% than the price obtained by cost plus calculation. Therefore, it is possible to achieve high innovation value profit of new products on the market.

Cost-Utility Analysis of a Dolutegravir-Based Versus Low-Dose Efavirenz-Based Regimen for the Initial Treatment of HIV-Infected Patients in Cameroon (NAMSAL ANRS 12313 Trial).

ObjectivesEvidence comparing the economic and patient values of the World Health Organization’s preferred (dolutegravir 50 mg [DTG]-based) and alternative (low-dose [400 mg] efavirenz [EFV400]-based) first-line antiretroviral regimens is limited. We compared patient-reported outcomes (PROs), costs, and the cost-utility of DTG- versus EFV400-based regimens in treatment-naive HIV-1 adults in the randomised NAMSAL ANRS 12313 trial in Yaoundé, Cameroon.MethodsWe used clinical data, PROs, and health resource use data collected in the trial’s first 96 weeks (2016–2019). Quality-adjusted life-years (QALYs) were computed using utility scores obtained from the 12-item Short Form (SF-12) generic health scale. Other PROs included perceived symptoms, depression, anxiety, and stress. In the 96-week base-case analysis, we estimated the unadjusted and multivariate-adjusted (1) mean costs (in US$, 2016 values) and QALYs/patient, (2) incremental costs and QALYs/patient, and (3) net health benefit (NHB). Outcomes were extrapolated over 5 and 10 years. Uncertainty was assessed using the cost-effectiveness acceptability curve and scenario and cost-effective price threshold analyses.ResultsIn the base-case analysis, the NHB (95% confidence interval) for the DTG-based regimen relative to the EFV400-based regimen was 0.056 (− 0.037 to 0.153), corresponding to an 88% probability of DTG being cost-effective. A 10% decrease in this regimen’s price (from $5.2 to $4.7/month) would increase its cost-effectiveness probability to 95%. When extrapolating outcomes over 5 and 10 years, the DTG-based regimen had a 100% probability of being cost-effective for a large range of cost-effectiveness thresholds.ConclusionsAt 2020 antiretroviral drug prices, a DTG-based first-line regimen should be preferred over an EFV400-based regimen in sub-Saharan Africa.Trial RegistrationClinicalTrials.gov Identifier: NCT02777229.Supplementary InformationThe online version contains supplementary material available at 10.1007/s40273-020-00987-3.

PMU65 Drugs with Incremental Cost Effectiveness Ratios ABOVE the Irish Threshold and Subsequent Price Negotiations

PMU65 Drugs with Incremental Cost Effectiveness Ratios ABOVE the Irish Threshold and Subsequent Price Negotiations

Pertussis vaccination in pregnancy in Canada: a cost-utility analysis.

The Canadian National Advisory Committee on Immunization recommends universal vaccination against pertussis in pregnancy. We assessed the cost-effectiveness of vaccination with tetanus-diphtheria-acellular pertussis (Tdap) vaccine in pregnancy in Canada. We conducted a cost-utility analysis comparing a vaccination program to no program corresponding with the 2017 Canadian guideline for economic evaluation from the Canadian Agency for Drugs and Technologies in Health. We developed 2 models - part decision tree, part Markov model - to estimate the long-term cost and quality-adjusted life-years (QALYs) for pregnant women and their infants. We obtained epidemiologic data from 2006 to 2015, and derived costs and utility values from relevant sources. Results were reported in 2019 Canadian dollars. We obtained expected values through probabilistic analysis, with methodologic and structural uncertainty assessed through scenario analyses. The analysis adopted an acquisition price of Tdap vaccine of $12.50, with scenario analysis conducted to identify the threshold price for vaccination to be cost-effective. In the base-case scenario, for every 1000 pregnant women vaccinated, the program would lead to a gain of 0.3 QALYs, occurring solely in infants, at an increased total cost of $12 987, or $44 301 per QALY gained. Based on a threshold of $50 000 per QALY gained, vaccination would have been cost-effective in 6 of the 10 years included in the model (range of incremental costs $20 463-$100 348 per QALY gained). The threshold cost for Tdap vaccine to be cost-effective over the 10-year horizon was $14.03. Based on a threshold of $50 000 per QALY gained, vaccination against pertussis in pregnancy would be cost-effective if the acquisition cost per vaccine were $14.03 or less. Province- and territory-specific analyses should be done to inform local decision-making.

SOME ASPECTS OF LEGAL REGULATION OF AGRICULTURAL PRODUCTS TRADE IN THE EU

This study deals with certain aspects of the common agricultural policy of the EU and considers some features of legal regulation of agricultural trade in the EU. Legal principles in regulating the organization of agricultural markets are highlighted; the system of intervention price and threshold price is analyzed. It is concluded that the prospects for the development of the agricultural market organization are described by certain economic indicators like production and consumption, exports and imports, acreage, etc. At the same time, there are legal factors that can significantly influence the legal aspects of agricultural trade in the European Union. For example, some of them are the system of mandatory compensation, new environmental standards, etc. A special place is occupied by the result of the reform of the agricultural sector: a system of one-time subsidies for farmers has been introduced.

Threshold for Computer- and Robot-Assisted Knee and Hip Replacements in the English National Health Service.

To estimate threshold prices for computer- and robot-assisted knee and hip replacement. A lifetime cohort Markov model provided the framework for analysis. Linked primary care and inpatient hospital records informed estimates of outcomes under current practice. Outcomes were estimated under a range of hypothetical relative improvements in quality of life if unrevised and in revision risk after computer or robot-assisted surgery. Threshold prices, a price at which the net health benefit from funding the intervention would be zero, for these improvements were estimated for a cost-effectiveness threshold of £20 000 per additional quality-adjusted life-year (QALY) gained. For average patient profiles under current knee and hip replacement practice, lifetime QALYs were 10.3 (9.9 to 10.7) and 11.0 (10.6 to 11.4), with costs of £6060 (£5947 to £6203) and £6506 (£6335 to £6710) for knee and hip replacement, respectively. A combined 50% relative reduction in risk of revision and 5% improvement in postoperative quality of life if unrevised would, for example, result in QALYs increasing to 10.9 (10.4 to 11.3) and 11.6 (11.2 to 12.0), and costs falling to £5880 (£5816 to £5956) and £6258 (£6149 to £6376) after knee and hip replacement, respectively. These particular improvements would have an associated threshold price of £11 182 (£10 691 to £11 721) for knee replacement and £12 134 (£11 616 to £12 701) for hip replacement. The 50% reduction in revision rate alone would have associated threshold prices of £1094 (£788 to £1488) and £1347 (£961 to £1842), and the 5% improvement in quality of life alone would have associated threshold prices of £9911 (£9476 to £10 296) and £10 578 (£10 171 to £10 982). At current prices, computer- and robot-assisted knee and hip replacement will likely need to lead to improvements in patient-reported outcomes in addition to any reduction in the risk revision.

Oil price shocks and renewable energy transition: Empirical evidence from net oil-importing South Asian economies.

This paper makes a novel attempt to model the nonlinear association between renewable energy consumption and crude oil prices concerning four net oil-importing South Asian economies: Bangladesh, India, Pakistan and Sri Lanka. Using annual data from 1990 to 2018, the long-run elasticity estimates confirm the nonlinear nexus and suggest that although rising crude oil prices do not facilitate renewable energy consumption initially, upon reaching a threshold level of crude oil price, further hikes in the oil prices are likely to elevate the renewable energy consumption figures. The estimated real oil price threshold, in this regard, is predicted to be around 135 US dollars per barrel, which is way above the prevailing oil price level. Identical nonlinearity is also confirmed in the context of the oil prices and renewable energy share in total final energy consumption volumes. Moreover, the nexus between renewable electricity share in aggregate electricity outputs and crude oil prices is also seen to exhibit nonlinearity. However, rising crude oil prices were not found to enhance the renewable electricity shares. Besides, the causality results implicated that movements in crude oil prices influenced the renewable energy transition process across the concerned South Asian economies. Thus, these results, in a nutshell, impose critically important policy implications for attainment of energy security and environmental sustainability in South Asia, particularly via curbing the traditional imported crude oil-dependencies of these nations.

Hydrogen as a long-term, large-scale energy storage solution when coupled with renewable energy sources or grids with dynamic electricity pricing schemes

One of the key challenges that still facing the adoption of renewable energy systems is having a powerful energy storage system (ESS) that can store energy at peak production periods and return it back when the demand exceeds the supply. In this paper, we discuss the costs associated with storing excess energy from power grids in the form of hydrogen using proton exchange membrane (PEM) reversible fuel cells (RFC). The PEM-RFC system is designed to have dual functions: (1) to use electricity from the wholesale electricity market when the wholesale price reaches low competitive values, use it to produce hydrogen and then convert it back to electricity when the prices are competitive, and (2) to produce hydrogen at low costs to be used in other applications such as a fuel for fuel cell electric vehicles. The main goal of the model is to minimize the levelized cost of energy storage (LCOS), thus the LCOS is used as the key measure for evaluating this economic point. LCOS in many regions in United States can reach competitive costs, for example lowest LCOS can reach 16.4¢/kWh in Illinois (MISO trading hub) when the threshold wholesale electricity price is set at $25/MWh, and 19.9¢/kWh in Texas (ERCOT trading hub) at threshold price of $20/MWh. Similarly, the levelized cost of hydrogen production shows that hydrogen can be produced at very competitive costs, for example the levelized cost of hydrogen production can reach $2.54/kg-H2 when using electricity from MISO hub. This value is close to the target set by the U.S. Department of Energy.

DESIGN AND IMPLEMENTATION OF WATER QUALITY CHECKING SYSTEM USING ARDUINO IN IOT

Water pollution is one amongst the most important fears for the inexperienced economic process. because of the fast development and urbanization, the standard of water is obtaining degrade year by year, and it ends up in water-borne diseases and additionally effects turquoise culture. In India, sixty fifth of the drink comes from underground sources, therefore it's necessary to see the standard of the water. The planned system is presenting a style and development of low-price system for real time observance of the water quality victimization IOT, which may notice pollution remotely and take necessary actions. The system consists of many sensors are wont to measure physical and chemical parameters of the water, like temperature, PH, flow and cloudiness. Arduino IDE act as a base station and therefore the knowledge from sensing element nodes are send to that. furthermore, GSM is connected to Arduino that compares sensing element prices to threshold prices and sends a text conscious of the agent if the obtained value is on top of or below the brink value. KEYWORDS: Arduino, IoT, Water Samples, GSM, Sensors.

Credit Risk Sensitivity to Carbon Price

In order to meet the objectives set by the Paris Climate Agreement, global greenhouse gas emissions must be drastically reduced. One way to achieve this goal is to set an effective carbon price. Although beneficial for the climate, a rapid increase in this price can have a significant financial impact on corporate firms. Based on the 2018 Intergovernmental Panel on Climate Change (IPCC) scenarios, we study the credit risk sensitivity of 795 international companies. We develop a bottom-up approach and analyze how probabilities of default within each sector might evolve in both the medium (2023) and long term (2060). We find that energy, materials and utilities sectors would be the most affected. Moreover, the risk materializes earlier and is more heterogeneous for utilities. From a policy perspective, the prices associated with a scenario limiting global warming to 2°C have a limited impact on global credit risk. Such a scenario therefore seems achievable without generating substantial financial losses. From these results, we propose a new indicator, the carbon price threshold, that takes the economic and capital structure of the firm into account in measuring carbon risk.

Cost-effectiveness of Anti-CD19 chimeric antigen receptor T-Cell therapy in pediatric relapsed/refractory B-cell acute lymphoblastic leukemia. A societal view.

IntroductionIn several studies, the chimeric antigen receptor T‐cell therapy tisagenlecleucel demonstrated encouraging rates of remission and lasting survival benefits in pediatric patients with relapsed/refractory (r/r) acute lymphoblastic leukemia (ALL). We assessed the cost‐effectiveness of tisagenlecleucel (list price: 320 000 EUR) among these patients when compared to clofarabine monotherapy (Clo‐M), clofarabine combination therapy (Clo‐C), and blinatumomab (Blina) from both a healthcare and a societal perspective. We also assessed future medical and future non‐medical consumption costs.MethodsA three‐state partitioned survival model was used to simulate a cohort of pediatric patients (12 years of age) through different disease states until the end of life (lifetime horizon). Relevant outcomes were life years, quality‐adjusted life years (QALYs), healthcare costs, societal costs, and the incremental cost‐effectiveness ratio (ICER). Uncertainty was explored through deterministic and probabilistic sensitivity analyses as well as through several scenario analyzes.ResultsTotal discounted costs for tisagenlecleucel were 552 679 EUR from a societal perspective, which was much higher than the total discounted costs from a healthcare perspective (ie, 409 563 EUR). Total discounted societal costs for the comparator regimens ranged between 160 803 EUR for Clo‐M and 267 259 EUR for Blina. Highest QALYs were estimated for tisagenlecleucel (11.26), followed by Blina (2.25), Clo‐C (1.70) and Clo‐M (0.74). Discounted societal ICERs of tisagenlecleucel ranged between 31 682 EUR/QALY for Blina and 37 531 EUR/QALY for Clo‐C and were considered cost‐effective with a willingness‐to‐pay (WTP) threshold of 80 000 EUR/QALY. None of the scenarios exceeded this threshold, and more than 98% of the iterations in the probabilistic sensitivity analysis were cost‐effective.DiscussionAt the current price and WTP threshold, tisagenlecleucel is cost‐effective from both a healthcare and a societal perspective. Nevertheless, long‐term effectiveness data are needed to validate the several assumptions that were necessary for this model.