Can We Trust Private Firms as Suppliers of Vaccine for the Avian Influenza?
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.
|Date of creation:||22 Feb 2005|
|Date of revision:||06 Feb 2006|
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