When the Big One Came: A Natural Experiment on Demand Shock and Market Structure in India's Influenza Vaccine Markets

• DOI: 10.1111/poms.12948
• Publication Date: 2018-09-12T08:54:40Z
• Authors: Arzi Adbi; Chirantan Chatterjee; Matej Drev; Anant Mishra
• Keywords: Pandemic; Demand shock

This study examines the relationship between exogenous demand shock and market structure in India's influenza vaccine markets. Using a novel dataset of detailed purchasing information for vaccines India, exploiting 2009–10 global H1N1 pandemic as an shock, we provide evidence heterogeneous responses to by domestic multinational manufacturers relative our control group all other We find that such results reversal with decline share significant gains manufacturers. is driven increased efforts at new product introduction among manufacturers, effects which persist even after has ended. Our remain robust use alternative controls, synthetic method, coarsened exact matching relevant estimation methodologies. These on role pandemic‐induced context emerging economy creating differential incentives bring products market. also conduct additional analysis explore impact targeted policy instruments Finally, discuss implications findings offer insights into preparedness markets facing adverse welfare from pandemics.