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Stockpiling anti-viral drugs for a pandemic: The role of Manufacturer Reserve Programs

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  • Harrington Jr., Joseph E.
  • Hsu, Edbert B.

Abstract

To promote stockpiling of anti-viral drugs by non-government organizations such as hospitals, drug manufacturers have introduced Manufacturer Reserve Programs which, for an annual fee, provide the right to buy in the event of a severe outbreak of influenza. We show that these programs enhance drug manufacturer profits but could either increase or decrease the amount of pre-pandemic stockpiling of anti-viral drugs.

Suggested Citation

  • Harrington Jr., Joseph E. & Hsu, Edbert B., 2010. "Stockpiling anti-viral drugs for a pandemic: The role of Manufacturer Reserve Programs," Journal of Health Economics, Elsevier, vol. 29(3), pages 438-444, May.
  • Handle: RePEc:eee:jhecon:v:29:y:2010:i:3:p:438-444
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    References listed on IDEAS

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    1. Pascal Courty & Li Hao, 2000. "Sequential Screening," Review of Economic Studies, Oxford University Press, vol. 67(4), pages 697-717.
    2. Gale, Ian L & Holmes, Thomas J, 1993. "Advance-Purchase Discounts and Monopoly Allocation of Capacity," American Economic Review, American Economic Association, vol. 83(1), pages 135-146, March.
    3. Gale, Ian L. & Holmes, Thomas J., 1992. "The efficiency of advance-purchase discounts in the presence of aggregate demand uncertainty," International Journal of Industrial Organization, Elsevier, vol. 10(3), pages 413-437, September.
    4. James D. Dana & Jr., 1998. "Advance-Purchase Discounts and Price Discrimination in Competitive Markets," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 395-422, April.
    5. Stole, Lars A., 2007. "Price Discrimination and Competition," Handbook of Industrial Organization, Elsevier.
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