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Can We Trust Private Firms as Suppliers of Vaccine for the Avian Influenza?

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Author Info
Forslid, Rikard () (Dept. of Economics, Stockholm University)
Abstract

Using a simple monopoly model, this note analyses the incentives of a vaccine producer. Because a vaccine tends to eradicate the disease for wich it is intended, it also tends to destroy its own market. This means that monopolistic producers may be tempted, in a socially non-optimal way, to delay the introduction of vaccines against new infections until the disease has spread.

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File URL: http://www.ne.su.se/paper/wp05_02rev.pdf
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Publisher Info
Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2005:2.

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Length: 5 pages
Date of creation: 22 Feb 2005
Date of revision: 06 Feb 2006
Handle: RePEc:hhs:sunrpe:2005_0002

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
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Web page: http://www.ne.su.se/
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Related research
Keywords: Vaccines

Find related papers by JEL classification:
D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
D62 - Microeconomics - - Welfare Economics - - - Externalities
H10 - Public Economics - - Structure and Scope of Government - - - General
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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