Health Care Management Papers
Document Type
Journal Article
Date of this Version
2011
Publication Source
International Journal of the Economics of Business
Volume
18
Issue
2
Start Page
239
Last Page
271
DOI
10.1080/13571516.2011.584429
Abstract
In US vaccine markets, competing producers with high fixed, sunk costs face relatively concentrated demand. The resulting price and quality competition leads to the exit of all but one or very few producers per vaccine. Our empirical analysis of exits from US vaccine markets supports the hypothesis that high fixed costs and both price and quality competition contribute to vaccine exits. We find no evidence that government purchasing has significant effects, possibly because government purchase tends to increase volume but lower price, with offsetting effects. Evidence from the flu vaccine market confirms that government purchasing is not a necessary condition for exits and the existence of few suppliers per vaccine in the US.
Recommended Citation
Danzon, P. M., & Pereira, N. S. (2011). Vaccine Supply: Effects of Regulation and Competition. International Journal of the Economics of Business, 18 (2), 239-271. http://dx.doi.org/10.1080/13571516.2011.584429
Included in
Marketing Commons, Pharmacoeconomics and Pharmaceutical Economics Commons, Pharmacy Administration, Policy and Regulation Commons
Date Posted: 27 November 2017
This document has been peer reviewed.