Market Failure and Social Dilemma: The Case of Antibiotic Overuse
The overuse of antibiotics exemplifies a market failure where the market price does not reflect the full social costs. For instance, when antibiotics are sold over-the-counter, as in India, their price fails to account for the societal cost of increasing bacterial resistance. This issue also occurs with prescriptions, as the incentives for doctors and patients often prioritize immediate, private benefits over the severe, collective harm of creating untreatable infections for future patients.
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The Economy 2.0 Microeconomics @ CORE Econ
Ch.4 Strategic interactions and social dilemmas - The Economy 2.0 Microeconomics @ CORE Econ
Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
Introduction to Microeconomics Course
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