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Conforming and Non-conforming Peer Effects in Vaccination Decisions

Author

Listed:
  • Elizabeth Bodine-Baron
  • Sarah Nowak
  • Raffaello Varadavas
  • Neeraj Sood

Abstract

Traditional economic models of vaccination assume that agents free-ride on the vaccination decision of others. These models show that private vaccination rates are always below the social optimal and even large subsidies cannot achieve disease eradication. In this paper, we build a model where in addition to the desire to free-ride, agents have a desire to conform to the vaccination decisions of their peers. In this model privately optimal vaccination rates can be higher or lower than the social optimal and thus subsidies for vaccination are not always optimal. However, in certain cases, even small subsidies can achieve disease eradication.

Suggested Citation

  • Elizabeth Bodine-Baron & Sarah Nowak & Raffaello Varadavas & Neeraj Sood, 2013. "Conforming and Non-conforming Peer Effects in Vaccination Decisions," NBER Working Papers 19528, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:19528
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    Citations

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    Cited by:

    1. RyokoSato & Yoshito Takasaki, 2016. "Peer Effects on Vaccination: Experimental Evidence from Rural Nigeria," CIRJE F-Series CIRJE-F-1002, CIRJE, Faculty of Economics, University of Tokyo.
    2. Ginger Zhe Jin & Thomas G. Koch, 2018. "Learning by Suffering? Patterns in Flu Shot Take-up," NBER Working Papers 25272, National Bureau of Economic Research, Inc.
    3. Guo, Feiyu & Cao, Erbao, 2021. "Can reference points explain vaccine hesitancy? A new perspective on their formation and updating," Omega, Elsevier, vol. 99(C).
    4. Chevalier, Judith A. & Schwartz, Jason L. & Su, Yihua & Williams, Kevin R., 2022. "JUE Insight: Distributional Impacts of Retail Vaccine Availability," Journal of Urban Economics, Elsevier, vol. 127(C).
    5. Thayer Alshaabi & David R Dewhurst & James P Bagrow & Peter S Dodds & Christopher M Danforth, 2021. "The sociospatial factors of death: Analyzing effects of geospatially-distributed variables in a Bayesian mortality model for Hong Kong," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-20, March.
    6. Chatterjee, Chirantan & Joshi, Radhika & Sood, Neeraj & Boregowda, P., 2018. "Government health insurance and spatial peer effects: New evidence from India," Social Science & Medicine, Elsevier, vol. 196(C), pages 131-141.

    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • I1 - Health, Education, and Welfare - - Health
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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