Consumption Externality and Yield Uncertainty in the Influenza Vaccine Supply Chain: Interventions in Demand and Supply Sides

被引:93
作者
Arifoglu, Kenan [1 ]
Deo, Sarang [2 ]
Iravani, Seyed M. R. [1 ]
机构
[1] Northwestern Univ, Dept Ind Engn & Management Sci, Evanston, IL 60208 USA
[2] Indian Sch Business, Hyderabad 500032, Andhra Pradesh, India
关键词
influenza vaccine; supply chain inefficiency; strategic consumer behavior; externality; yield uncertainty; ADVISORY-COMMITTEE; RECOMMENDATIONS; PREVENTION; MODEL;
D O I
10.1287/mnsc.1110.1469
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
We study the impact of yield uncertainty (supply side) and self-interested consumers (demand side) on the inefficiency in the influenza vaccine supply chain. Previous economic studies, focusing on demand side, find that the equilibrium demand is always less than the socially optimal demand because self-interested individuals do not internalize the social benefit of protecting others via reduced infectiousness (positive externality). In contrast, we show that the equilibrium demand can be greater than the socially optimal demand after accounting for the limited supply due to yield uncertainty and manufacturer's incentives. The main driver for this result is a second (negative) externality: Self-interested individuals ignore that vaccinating people with high infection costs is more beneficial for the society when supply is limited. We show that the extent of the negative externality can be reduced through more efficient and less uncertain allocation mechanisms. To investigate the relative effectiveness of government interventions on supply and demand sides under various demand and supply characteristics, we construct two partially centralized scenarios where the social planner (i.e., government) intervenes either on the demand side or the supply side, but not both. We conduct an extensive numerical analysis.
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页码:1072 / 1091
页数:20
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