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Open Access to the Resource of Antibiotic Treatment Efficacy Subject to Bacterial Resistance

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  • Bruno Nkuiya
  • Markus Herrmann
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    Abstract

    In this paper, we are interested in how a pharmaceutical industry manages existing antibiotic drugs in the context of bacterial resistance. We consider a model based on an epidemiological framework where antibiotic recovery rates, and thus intrinsic qualities, may differ. Antibiotic efficacy is modeled as a common pool of a non-renewable resource to which antibiotic producers have open access. The paper derives antibiotic demands within a vertical differentiation model and characterizes the dynamics of infected individuals, antibiotic efficacy and treatment rates under the open-access and the socially optimal allocation. We show that the high-quality antibiotic drug loses its comparative advantage over time under both allocations, such that the low-quality drug should be used longer. This occurs at a later point of time in the social optimum and allows for a better control of infection in the longer run. In contrast with the ambiguous outcome reported in the literature, the socially optimal steady-state level of antibiotic efficacy is lower than that of the open-access allocation. We also extend our analysis to a strategic, duopolistic context.

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    File URL: https://www.create.ulaval.ca/sites/create.ulaval.ca/files/Publications/create2013-2.pdf
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    Bibliographic Info

    Paper provided by CREATE in its series Cahiers de recherche CREATE with number 2013-2.

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    Date of creation: 2013
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    Handle: RePEc:lvl:creacr:2013-2

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    Postal: Faculté des sciences de l'agriculture et de l'alimentation, Pavillon Paul-Comtois, 2425 rue de l'Agriculture, local 4424, Québec, Qc, G1V 0A6
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    Web page: http://www.create.ulaval.ca
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    Related research

    Keywords: Antibiotic management; Non-renewable resource; Open access; Social optimum; Public health;

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