Teaching activity

In the News Teaching Activity – how information failure can cause the return of measles (Mar 2025)

Elizabeth Veal

13th March 2025

A measles outbreak in Texas has highlighted the dangers of misinformation and low vaccination rates which are threatening public welfare.

When diseases like measles spread, they create negative externalities, where unvaccinated individuals impose risks on others in society. Information gaps—fuelled by misinformation, often picked up on social media—lead to market failures, as individuals undervalue vaccines' public benefits. This results in reduced herd immunity, escalating healthcare costs and loss of social welfare. To combat this, US health officials are intensifying vaccination campaigns, countering misinformation, and urging community-wide immunisation. In Texas, efforts are focusing on boosting vaccination rates, particularly in counties with low coverage, to curb further outbreaks.

RFK Jr changes stance on measles outbreak as virus spreads - BBC News

1. With reference to the article, explain how misinformation about vaccinations has caused market failure.

2. Using a US measles vaccination market diagram, discuss the impact on social welfare of the information failure in this market.

3. Discuss the likely success of the strategies of US health officials to combat the measles outbreak in Texas.

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Elizabeth Veal

Liz has taught Economics for over 25 years, including several years as Head of Economics at leading schools.

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