Social interactions in a pandemic

Arbeitspapier

Externalities and social preferences, such as patience and altruism, play a key role in the endogenous choice of social interactions, which in turn affect the diffusion of a pandemic or patterns of social segregation. We build a dynamic model, augmented with an SIR block, in which agents optimally choose the intensity of both general and group-specific social interactions. The equilibria in the baseline and the SIR-network model result from a matching process governed by optimally chosen contact rates. Taking into account agents' endogenous behavior generates markedly different predictions relative to a na¸ve SIR model. Through a planner's problem, we show that neglecting agents' response to risk leads to misguided policy decisions. Mobility restrictions beyond agents' restraint are needed to the extent that aggregate externalities are not curtailed by social preferences.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECONtribute Discussion Paper ; No. 110

Classification and Topics

• Classification: Wirtschaft ; Externalities ; Altruism; Philanthropy; Intergenerational Transfers ; Network Formation and Analysis: Theory ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Macro-Based Behavioral Economics: General‡ ; Health: General ; Health: Government Policy; Regulation; Public Health
• Subject: social interactions ; pandemics ; SIR network models ; social preferences ; social planner ; targeted policies

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Alfaro, Laura ; Faia, Ester ; Lamersdorf, Nora ; Saidi, Farzad
• Event: Veröffentlichung
• (who): University of Bonn and University of Cologne, Reinhard Selten Institute (RSI)
• (where): Bonn and Cologne
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/244344
• Last update: 10.03.2025, 11:42 AM CET