Price to Avoid Vaccine Shortages, Say Researchers

Research from Duke University's Fuqua School of Business has found that over the last decade, every 10 percent increase in the price of vaccines was associated with a 1 percent lower probability of a shortage.   The research, "No Shot: U.S. Vaccine Prices and Shortages," Duke University's Professor David Ridley, Xiaoshu Bei and Eli Liebman is published in the February issue of Health Affairs. The researchers studied the supply and price of 22 vaccines between 2004 and 2013. They found 24 instances of a vaccine shortage in a calendar year during that spell. The shortages resulted not from an increase in demand, but a dwindling of supply.   "The government doesn't want to overpay," commented Professor Ridley, "but there's a tension between responsible use of government funds and giving manufacturers sufficient incentive to get into manufacturing - and stay in." Today's price affects tomorrow's supply. Manufacturers have to make investment decisions based on current prices.   http://www.fuqua.duke.edu/news_events/news-releases/ridley-vaccines/#.VrnKj7mLSIF