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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://www2.ne.su.se/paper/wp05_02rev.pdf
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Bibliographic 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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Keywords: Vaccines;

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Cited by:
  1. Lars Jonung & Werner Roeger, 2006. "The macroeconomic effects of a pandemic in Europe - A model-based assessment," European Economy - Economic Papers 251, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.

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