Antitrust, e.g. break them up into smaller companies to increase competition.
Regulation, e.g. introduce export controls and enforce a price ceiling for vaccines produced in Europe.
Nationalisation, e.g. buy the companies or their patents and ramp up production.
Price discrimination, e.g. allow them to charge higher prices to those EU governments and individuals that can pay more.
A profits tax to strip them of their extraordinary profits.
Free trade, e.g. approve as many vaccines as possible and let them compete.
Waive their patent protection so that other companies can produce their vaccines.
Total votes: 81
Learning objectives:
Understanding the effects of a monopoly on prices and quantities.
Understanding the different ways of dealing with monopolies: antitrust, regulation, nationalisation and doing nothing.
Understanding the effect of fixed research and development costs on the average cost of vaccines.
Understanding the social role of patents as government-protected monopolies that encourage innovation.
Understanding the concept of a natural monopoly, and its application to vaccine manufacturing.
Understanding the effects of price discrimination on a monopoly's production, consumer surplus and producer profit.
Understanding the dilemma of dealing with an exporting monopoly.
Presentation videos:
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