September 20, 2021

Misguided proposals

 Consideration Of Value-Based Pricing For Treatments And Vaccines Is Important, Even In The COVID-19 Pandemic

Prices send signals about consumer preferences and thus stimulate producers to make more of what people want. Pricing in a pandemic is complicated and fraught. The policy puzzle involves balancing lower prices to ensure access to essential medications, vaccines, and tests against the need for adequate revenue streams to provide manufacturers with incentives to make the substantial, risky investments needed to develop products in the first place. We review alternative pricing strategies (cost recovery models, monetary prizes, and advance market commitments) for coronavirus disease 2019 (COVID-19) drugs, vaccines, and diagnostics. 

All these stuff on consumer preferences is useless under a pandemic. We are all at risk, and this systemic risk has to be solved "systemically", by the government. It is not an issue of individual preferences. Forget value based in systemic risk events. Forget this misguided article. 

Sorolla 1903