You are a utilitarian social planner and have a very limited number of vaccines to a new and potentially deadly virus.
How do you allocate them? Do you:
(A) give them to specific groups, such as high-risk populations, or
(B) sell them to the highest bidder and rebate the revenue lump-sum to everyone?
If you choose (A), do you allow those individuals allocated the vaccine to sell their dose to someone else?
Remember -your goal is to Maximize Total Utility.
What is YOUR answer?
As a utilitarian social planner aiming to maximize total utility, there are different approaches you can consider for allocating a limited number of vaccines.
Option (A): Allocate vaccines to specific groups, such as high-risk populations.
- This approach is based on prioritizing those who are at a higher risk of contracting the virus or experiencing severe consequences from it.
- To implement this, you would need to determine the criteria for identifying high-risk populations (e.g., age, pre-existing conditions, frontline workers) and distribute vaccines accordingly.
- While this approach focuses on protecting vulnerable individuals and reducing the overall harm caused, it may not necessarily maximize total utility if it doesn't efficiently distribute vaccines to those who can create the most positive impact for society.
Option (B): Sell vaccines to the highest bidder and rebate the revenue lump-sum to everyone.
- This approach is based on market principles, where individuals willing to pay the most for vaccines can acquire them.
- By selling vaccines to the highest bidder, you generate revenue that can be distributed equally (rebated) to everyone.
- This approach may lead to more efficient allocation of vaccines based on the principles of supply and demand and could potentially generate funds that can be used for further public health initiatives.
- However, implementing this approach raises ethical concerns as it may create disparities, favoring those with greater wealth and leaving vulnerable populations at a disadvantage.
Allowing individuals allocated the vaccine to sell their dose to someone else:
- Allowing individuals to resell their allocated vaccines introduces an additional dynamic in the allocation process.
- This approach may promote a sense of personal choice and allow individuals to assign their value to the vaccine.
- However, it might also lead to vaccine hoarding, speculative behavior, and further accentuate inequalities.
Ultimately, the optimal approach to allocate vaccines will depend on various factors, including ethical considerations, effectiveness in reducing the spread of the virus, and mitigating the consequences. It may be necessary to combine different methods, such as targeted allocation for high-risk groups, while also considering the principles of fairness and justice.