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Vaccines between war and market

Author

Listed:
  • Anna Balestra

    (9371Università Cattolica del Sacro Cuore, Italy)

  • Raul Caruso

    (9371Università Cattolica del Sacro Cuore, Italy; Catholic University ‘Our Lady of Good Counsel’, Albania)

Abstract

This short paper presents a theoretical analysis that is intended to throw light on some issues related to the supply of vaccines in a context where producer countries are involved in armed conflicts. We present a simple model which combines elements of Hirshleifer-style economic analysis of conflict and microeconomic modelling of oligopolistic markets. In particular, we apply a simple Cournot duopoly model to two producer countries. Findings show that world supply of vaccines is indirectly and negatively affected by the existence of armed conflicts in a producer country that is involved in an armed conflict. Yet such negative impact on supply also increases the world price. In brief, participation of producer countries in armed conflicts turns out to be detrimental for global supply of vaccines.

Suggested Citation

  • Anna Balestra & Raul Caruso, 2023. "Vaccines between war and market," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 26(1), pages 24-39, March.
    • Handle: RePEc:sae:intare:v:26:y:2023:i:1:p:24-39
    DOI: 10.1177/22338659231154030
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    More about this item

    Keywords

    COVID-19; vaccines; armed conflict; oligopoly;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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