DP5336 | {RC TEST RECORD} Can we trust private firms as suppliers of vaccines for the Avian influenza?

Author(s)

Publication Date

23/11/2005

JEL Code(s)

Keyword(s)

Programme Area(s)

Abstract

Using a simple monopoly model, this note analyses the incentives of a vaccine producer. Because a vaccine tends to eradicate the disease for which 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.