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Social contact in a pandemic: Rationality vs. heuristics

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  • Wilson, Matthew S.

Abstract

During the Covid pandemic, people weighed the benefits of social contact against the risks to their health. Ideally, people would respond based on the true infection rate; this is the rational model. However, there was high uncertainty, so perhaps people relied upon the heuristic model instead. I estimate revealed preferences for health and social contact at the county level and find evidence in favor of the heuristic model. This is important since many models of optimal policy assume that people respond to the true infection rate.

Suggested Citation

  • Wilson, Matthew S., 2023. "Social contact in a pandemic: Rationality vs. heuristics," Research in Economics, Elsevier, vol. 77(1), pages 159-177.
    • Handle: RePEc:eee:reecon:v:77:y:2023:i:1:p:159-177
    DOI: 10.1016/j.rie.2023.01.007
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    References listed on IDEAS

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    More about this item

    Keywords

    Covid; Rationality; Heuristics; Revealed preferences;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • I1 - Health, Education, and Welfare - - Health

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