The Economics Of Vaccine Pricing : The Indicator from Planet Money

We all agree that we need a vaccine for COVID-19 — for public health, and to stop its devastating effects. And also because without one, it's going to be difficult for our economy to reopen fully. But developing a vaccine isn't as easy as it might sound. For one thing, you have to think about who actually develops the vaccine. In the U.S., it's not some government agency; it's pharmaceutical companies. And pharma companies work for a profit. They're going to want to price that vaccine as high as they can. The government, on the other hand, wants to keep the price of a vaccine as low as possible, to make sure everyone gets vaccinated.
Aligning the incentives of pharma companies with the needs of the public and the government is complicated. And finding a sweet spot for pricing a vaccine is vital.