Fair Allocation of Vaccines, Ventilators and Antiviral Treatments: Leaving No Ethical Value Behind in Healthcare Rationing

Author:

Pathak Parag A.12ORCID,Sönmez Tayfun3ORCID,Ünver M. Utku34ORCID,Yenmez M. Bumin3

Affiliation:

1. Department of Economics, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139;

2. National Bureau of Economic Research, Cambridge, Massachusetts 02138;

3. Department of Economics, Boston College, Chestnut Hill, Massachusetts 02467;

4. Deakin University, Burwood, 3125 Victoria, Australia

Abstract

A priority system has traditionally been the protocol of choice for the allocation of scarce life-saving resources during public health emergencies. COVID-19 revealed the limitations of this allocation rule. Many argue that priority systems abandon ethical values, such as equity, by discriminating against disadvantaged communities. We show that a restrictive feature of the traditional priority system largely drives these limitations. Following minimalist market design, an institution design paradigm that integrates research and policy efforts, we formulate pandemic allocation of scarce life-saving resources as a new application of market design. Interfering only with the restrictive feature of the priority system to address its shortcomings, we formulate a reserve system as an alternative allocation rule. Our theoretical analysis develops a general theory of reserve design. We relate our analysis to debates during COVID-19 and describe the impact of our paper on policy and practice. This paper was accepted by Axel Ockenfels, behavioral economics and decision analysis.

Publisher

Institute for Operations Research and the Management Sciences (INFORMS)

Subject

Management Science and Operations Research,Strategy and Management

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