Flu Shot & Market Failure

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Presentation transcript:

Flu Shot & Market Failure Econ News – Chapter 27 Review the flu vaccine crisis of 2004 in U.S. Examine how and why market process may have failed Discuss why government regulations may be needed to ensure an adequate supply of flu vaccine

Econ News – November 23, 2004 Who'll get flu vaccine poses dilemma for doctors! Vaccine shortages have forced many to scramble to find clinics with flu shots available. Flu vaccine shortage might continue into 2005 Federal officials investigate flu vaccine smuggling

Econ News – October 15 & November 17, 2004 The loss of Chiron influenza vaccine supply remains a challenge… In coordination with other elements of the Department of Health and Human Services (HHS or the Department), we have been actively exploring all viable options to secure additional dosages of flu vaccine licensed for use in the U.S. Chiron Corporation (Nasdaq:CHIR) announced that president and chief executive officer Howard Pien will appear before the U.S. House of Representatives Committee on Government Reform

Econ News – November 23, 2004 Bill to boost flu vaccine production picks up support Senator Larry Craig (R-Idaho) - Flu manufacturers are now making decisions in order to fill orders for next year. Flu is a worldwide killer and the need for vaccine is clear - and yet, the market has dwindled to the point that the pullout of just one company can devastate our supply.