Advance Market Commitment
A research and innovation incentive mechanism that stimulates firms to invest in early-stage R&D by making binding commitments to purchase future outputs, while addressing market failures and insufficient R&D incentives. The pneumococcal vaccine Advance Market Commitment (AMC) is the canonical real-world example of this approach.
Timeline (last 90 days)
The pneumococcal vaccine AMC, jointly initiated in 2009 by the Gates Foundation and other organizations, committed to purchasing qualified vaccines at subsidized prices, leveraging pharmaceutical companies to invest in vaccine development
Economist Michael Kremer is the principal theoretical designer of the Advance Market Commitment (AMC) mechanism, and received the 2019 Nobel Prize in Economics partly for this work
The key difference between AMC and prize mechanisms is that prizes reward the solution itself, while AMC rewards the scaled deployment of the solution
All Facts (3)
The pneumococcal vaccine AMC, jointly initiated in 2009 by the Gates Foundation and other organizations, committed to purchasing qualified vaccines at subsidized prices, leveraging pharmaceutical companies to invest in vaccine development
50%UnverifiedEconomist Michael Kremer is the principal theoretical designer of the Advance Market Commitment (AMC) mechanism, and received the 2019 Nobel Prize in Economics partly for this work
50%UnverifiedThe key difference between AMC and prize mechanisms is that prizes reward the solution itself, while AMC rewards the scaled deployment of the solution
50%