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Vaccines between War and Market

Author

Listed:
  • Anna Balestra

    (CSEA, Università Cattolica del Sacro Cuore)

  • Raul Caruso

    (Department of Economic Policy and CSEA, Università Cattolica del Sacro Cuore CESPIC, Catholic University “Our Lady of Good Counsel”)

Abstract

This short paper presents a theoretical analysis which is intended to throw light on some issues related to supply of vaccines in a context where producer countries are involved in armed conflicts. We present a simple model which combines elements of Hirshleifer-style economic analysis of conflict and microeconomic modelling of oligopolistic markets. In particular, we apply a simple Cournot duopoly model to two producer countries. Findings show that world supply of vaccines is indirectly and negatively affected by the existence of armed conflicts in a producer country which is involved in an armed conflict. Yet such negative impact on supply also increases the world price. In brief, participation of producer countries into armed conflicts turns to be detrimental for global supply of vaccines. Such result is driven by: (i) the characteristics and the technology of conflict; (ii) the market structure.

Suggested Citation

  • Anna Balestra & Raul Caruso, 2022. "Vaccines between War and Market," Working Papers 1019, European Centre of Peace Science, Integration and Cooperation (CESPIC), Catholic University 'Our Lady of Good Counsel'.
    • Handle: RePEc:pea:wpaper:1019
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    More about this item

    Keywords

    COVID-19; Vaccines; Armed Conflict; Oligopoly.;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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