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Interaction, Protection and Epidemics

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  • Sanjeev Goyal
  • Adrien Vigier

Abstract

Individuals respond to the risk of infectious diseases by restricting interaction and by investing in protection. We develop a model that examines the trade-off between these two actions and the consequences for disease prevalence. There exists a unique equilibrium: individuals who invest in protection choose to interact more relative to those who do not invest in protection. Changes in the contagiousness of the disease have nonmonotonic effects: as a result interaction initially falls and then rises, while disease prevalence too may initial increase and then decline. We then consider a society with two communities that differ in their returns from interaction - High and Low. Individuals in isolated communities exhibit different behavior: the High community has a higher rate of protection and interaction and a lower rate of infection. Integration amplifies these differences.

Suggested Citation

  • Sanjeev Goyal & Adrien Vigier, 2014. "Interaction, Protection and Epidemics," Cambridge Working Papers in Economics 1458, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1458
    Note: sg472
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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