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Let’s apply what we learned to the current COVID-19 crisis. How are the three types of incentives used to encourage the development of a vaccine or treatment (see below for background reading)?
#1 Patents
Who is responding to the incentives created by patents to develop a vaccine or treatment for COVID-19? Name one example. What type of incentive(s) does a patent create? (HINT: what is the benefit of owning a patent?)
What are the pros and cons of using patents to find a COVID-19 vaccine?
Discussion Questions
(with teacher or parent)
More Learning
Economics of Ideas
#2 Subsidies
How are subsidies being used to find a vaccine or treatment for COVID-19? Can you find an example of a specific subsidy?
What are the pros and cons of using subsidies to find a vaccine?
#3 Prizes
Name at least one example of a prize being offered (or planned to be offered) to find a vaccine or treatment for COVID-19. Who might be incentivized by a prize that would not be by a patent or a subsidy? Why?
What are the pros and cons of using prizes to find a COVID-19 vaccine?
Instructions
1. Watch the video above.
2. Let’s apply what we learned to the current COVID-19 crisis. How are the three types of incentives used to encourage the development of a vaccine or treatment?
You can find answers in the
following articles:
Congress pumps up NSF program to fast-track COVID-19 research (Science)
$1 million plus in Emergent Ventures Prizes for coronavirus work (Marginal Revolution)
These companies are racing to roll out COVID-19 treatments (CNN)
McHenry pushes $1B reward for coronavirus vaccine (Roll Call)
5 Biotechs in Search of a Coronavirus Vaccine (Yahoo)
Yale applies for new COVID-19 grant (Yale Daily News)
Discussion Questions
This assignment
is available as a Google Doc.
Teachers: See the curriculum
In this TED talk, Alex Tabarrok explains how the supply and demand of ideas affects us all.
Alex Tabarrok summarizes the reasons why prizes are an important tool to address the COVID-19 pandemic. Continue reading...
Teachers:
The Economics of Ideas: COVID-19 Vaccine?
During a pandemic, we need new treatments — and fast. Economists often say, “incentives matter”, and that’s true, even in a pandemic.
A vaccine or treatment is, fundamentally, an idea.
However, as you’ll see, ideas are a bit tricky to incentivize. Watch the video below to learn about three different ways we can encourage the development of new ideas: patents, prizes, and subsidies.
Let’s apply what we learned to the current COVID-19 crisis. How are the three types of incentives used to encourage the development of a vaccine or treatment (see below for background reading)?
#1 Patents
How are patents being used to find a vaccine or treatment for COVID-19?
What are the pros and cons of using patents to find a vaccine?
#2 Subsidies
How are subsidies being used to find a vaccine or treatment for COVID-19? Can you find an example of a specific subsidy?
What are the pros and cons of using subsidies to find a vaccine?
Discussion Questions (with parent or teacher)
More Learning
Economics of Ideas
#3 Prizes
Name at least one example of a prize being offered (or planned to be offered) to find a vaccine or treatment for COVID-19. Who might be incentivized by a prize that would not be by a patent or a subsidy? Why?
What are the pros and cons of using prizes to find a COVID-19 vaccine?
Instructions
2. Let’s apply what we learned to the current COVID-19 crisis. How are the three types of incentives used to encourage the development of a vaccine or treatment?
#2 Subsidies
How are subsidies being used to find a vaccine or treatment for COVID-19? Can you find an example of a specific subsidy?
What are the pros and cons of using subsidies to find a vaccine?
You can find answers in the following articles:
Congress pumps up NSF program to fast-track COVID-19 research (Science)
These companies are racing to roll out COVID-19 treatments (CNN)
McHenry pushes $1B reward for coronavirus vaccine (Roll Call)
5 Biotechs in Search of a Coronavirus Vaccine (Yahoo)
Yale applies for new COVID-19 grant (Yale Daily News)
$1 million plus in Emergent Ventures Prizes for coronavirus work (Marginal Revolution)
Discussion Questions
This assignment is available as a Google Doc.
Teachers: See the curriculum
Discussion Questions (with teacher or parent)
#1 Patents
Who is responding to the incentives created by patents to develop a vaccine or treatment for COVID-19? Name one example. What type of incentive(s) does a patent create? (HINT: what is the benefit of owning a patent?)
What are the pros and cons of using patents to find a COVID-19 vaccine?
Teachers: Request Answer Key
In this TED talk, Alex Tabarrok explains how the supply and demand of ideas affects us all.
Alex Tabarrok summarizes the reasons why prizes are an important tool to address the COVID-19 pandemic. Continue reading...
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The Economics of Ideas: COVID-19 Vaccine?
During a pandemic, we need new treatments — and fast. Economists often say, “incentives matter”, and that’s true, even in a pandemic.
A vaccine or treatment is, fundamentally, an idea.
However, as you’ll see, ideas are a bit tricky to incentivize. Watch the video below to learn about three different ways we can encourage the development of new ideas: patents, prizes, and subsidies.