Micro Foundations · intro

A pandemic raises the value of mass vaccination

What moves on the Public Goods & the Free-Rider Problem diagram

Social MBshifts right (large)
Private MBshifts right (small)

A pandemic raises both private and social marginal benefit, but the external (herd immunity) component grows most, widening the case for public provision.

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Step by step

1
Vaccination protects you a little and everyone around you a lot: classic public-good structure.
2
A pandemic hits. Every jab now prevents far more harm than before.
3
Both benefit curves shift right, but the social one jumps much further: herd immunity benefits everyone.
4
The gap between private and social benefit is exactly why governments subsidize or mandate vaccination in a crisis.

Where this shows up

Examiners ask this as: pandemic, vaccination, herd immunity, covid, public health emergency.

Other scenarios on Public Goods & the Free-Rider Problem

Donations collapse as free-riding spreads →New technology slashes the cost of provision →