Advance Market Commitments: Insights from Theory and Experience
Michael Kremer, Jonathan Levin, Christopher M. Snyder
Abstract
Ten years ago, donors committed $1.5 billion to a pilot Advance Market Commitment (AMC) to help purchase pneumococcal vaccine for low-income countries. The AMC aimed to encourage the development of such vaccines, ensure distribution to children in low-income countries, and pilot the AMC mechanism for possible future use. Three vaccines have been developed and more than 150 million children immunized, saving an estimated 700,000 lives. This paper reviews the economic logic behind AMCs, the experience with the pilot, and key issues for future AMCs.
Topics & Concepts
BusinessMarketingKey (lock)Economic growthEconomicsComputer securityComputer sciencePneumonia and Respiratory InfectionsVaccine Coverage and HesitancyAdolescent and Pediatric Healthcare