Fair Negotiation Model with Applications to Ethical Therapeutic Drug Pricing

Every year, diabetes affects 37 million Americans and incurs hundreds of millions of dollars in medical costs. Numerous urgent challenges, such as ethical insulin pricing, can be resolved through fair negotiation-a method that optimizes conflicting, equal weighted agents’ demands while converging to a single state. We implement a novel bi-objective optimization model that does not require manual weightage or normalization of objective functions while generating Pareto-Optimal solutions responsive to an initial state. Machine Learning (ML) is used to estimate the negotiation’s effectiveness. Our recommendation system converges to an insulin price that can be around 30 percent more affordable to patients while maintaining similar company revenue.