BY ARINA RAUF

A whopping 87% of Singapore’s population is fully vaccinated with another 39% having also received their booster, yet I am rather unfortunate to know of those who refuse to be vaccinated even though they are medically fit (yes, this is a nicer way of saying that there are anti-vaxxers in my social circle). While it may be difficult to convince them otherwise, we take this opportunity to revise our Microeconomics concepts and apply them to real life situations - in this case, vaccinations.

1. Vaccines are merit goods which are underconsumed.

Recall that merit goods are goods which are deemed socially desirable by the government and yet underconsumed. This means that the marginal social benefit of getting vaccinated is greater than the marginal private benefit - as a community, we are more likely to benefit from everyone getting vaccinated as the likelihood of the virus spreading becomes greatly reduced. The severity of COVID-19 is also reduced if one is vaccinated. 

A common argument by anti-vaxxers is that they do not know what is inside the vaccine, and whether or not such components are truly safe for the human body. However, if we think like an economist, the benefits of being vaccinated (preventing infection and transmission) far outweigh the costs (rare complications due to vaccinations, severe illness due to COVID-19 and exposing others to the virus). 

2. Government intervention in the market for COVID-19 vaccines.

There is also imperfect information in the market where the perceived marginal private cost is greater than the actual marginal private cost. This is made worse by individuals and groups who try to spread fear and fake news regarding vaccines. The government is also actively encouraging senior citizens to get vaccinated through offering incentives (which was quite successful!) as well as setting up information centres, organising heartland vaccination drives and working with general practitioners.

Given the government’s vaccination efforts, the monetary cost of being vaccinated is also zero as it is provided for free. What’s more, if one does suffer from complications due to vaccinations, hospitalisation would also be covered under the Intergrated Shield Plan. On the flipside, if one is not vaccinated and contracts COVID-19, all medical bills will have to be borne by him, on top of living (or dying) with the fact that unvaccinated have a lower survival rate.

3. Which vaccine should I take?

After understanding why we should be vaccinated, we move on to the next stage of determining the type of vaccine to administer. This is an exercise in rational decision-making. In Singapore, the government offers the Moderna or Pfizer-BioNTech/Corminaty vaccines for free, while those who prefer the Sinopharm or Sinovac vaccines may choose to get vaccinated at participating clinics. 

Someone looking to get vaccinated may consider the following:

• Vaccination centre: Is the location far from home? Are there sufficient slots at my preferred timing? Who is the medical provider?

• Baits: Are there free gifts such as masks and hand sanitisers provided? (This is something I personally considered!)

• Vaccine effectiveness: Data shows that the mRNA vaccines are more effective against the virus and result in lower death rates. If one is concerned about the side effects of such vaccines, data also shows that these are rather mild and there are no serious side effects. 

• Medical history: For those who are ineligible for mRNA vaccines, the choice would be narrowed down to either Sinopharm or Sinovac. Of course, speak to a trusted medical practitioner before deciding!

We can also extend this rational decision-making process to booster shots! Would mixing vaccines lead to a better outcome? Is it worth the side effects? (I had a bad fever after my second dose and still proceeded with mixing vaccines, leading to an even worse one after my booster shot.)

Did you know? For parents with young children, there is a greater dilemma given the imperfect information regarding the safety and efficacy of vaccines for children. This article highlights the thought process of such parents, and we see how they eventually decide to vaccinate their child after weighing the pros and cons.

Whether people choose to get vaccinated owing to the convenience of being vaccinated (VTLs, VD-SMMs) or for the protection against COVID-19, we can see that the pros of being vaccinated far outweigh the cons - or in other words, the marginal social benefit far outweighs the marginal private benefit. So after understanding the economics behind vaccinations, don’t wait to get vaccinated and do encourage those you know who are yet to be vaccinated to do so! #IGotMyShotSG