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12/04/2005

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because a new virus has appeared, the risk of side effects cannot be calculated and incorporated into the sale price; this is an argument for the government's sharing the risk through some scheme for indemnifying some of the liability costs of the manufacturers of the new vaccine. A number of comments discuss the distinction I made in the Orphan Drugs posting of the previous week between economics and utilitarianism. (In fact the Orphan Drug and avian flu topics are closely related; both are about potential problems in the production of drugs, and they are quite similar problems--in the Orphan Drug context stemming from the small size of the market relative to the fixed costs of a new drug, and in the avian flu context to the

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