First‐best health policy in vaccine markets with health and network externalities

Author:

Amir Rabah1ORCID,Garcia Filomena23,Topolyan Iryna4ORCID

Affiliation:

1. Department of Economics The University of Iowa Iowa City Iowa USA

2. Economics Department, Poole College of Management NC State University Raleigh North Carolina USA

3. UECE University of Lisbon Lisbon Portugal

4. Department of Economics University of Cincinnati Cincinnati Ohio USA

Abstract

AbstractThis paper considers an oligopolistic market for a vaccine, characterized by negative network effects, which stem from the free‐riding behavior of individuals engaged in a vaccination game. Vaccine markets often suffer from three imperfections: high concentration, network effects, and a health externality (contagion). The first conclusion of the paper is that the negative network externality is important as a market distortion, as it may lead to significant welfare losses. The second and main part of the paper develops a two‐part per‐unit subsidy scheme that a social planner could use to target both consumers and producers of vaccines. The scope of such a subsidy scheme to induce the firms to produce the first‐best output without network effects (which is the most ambitious first‐best target) is investigated. In many cases, while the first‐best is attainable, it requires negative prices for vaccines, which amounts to rewarding consumers to induce them to vaccinate.

Publisher

Wiley

Subject

Economics and Econometrics,Sociology and Political Science,Finance

Cited by 3 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. Network externalities in a vertically differentiated luxury goods market;Mathematical Social Sciences;2024-03

2. Positional and conformist effects in voluntary public good provision;Journal of Public Economic Theory;2024-02

3. Epidemics, vaccines, and health policy;Journal of Public Economic Theory;2023-11-23

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3