ABSTRACT

COVID-19, Shelter-In Place Strategies and Tipping   [open pdf - 0B]

From the Abstract: "Social distancing via shelter-in-place strategies has emerged as the most effective way to combat Covid-19 [coronavirus disease 2019]. In the United States, choices about such policies are made by individual states. Here we show that the policy choice made by one state influences the incentives that other states face to adopt similar policies: they can be viewed as strategic complements in a supermodular game. If they satisfy the condition of uniform strict increasing differences then following Heal and Kunreuther we show that if enough states engage in social distancing, they will tip others to do the same and thus shift the Nash equilibrium with respect to the number of states engaging in social distancing."

Report Number:
NBER Working Paper No. 27124; National Bureau of Economic Research Working Paper No. 27124
Author:
Publisher:
Date:
2020-05
Series:
Copyright:
2020 Zhihan Cui, Geoffrey Heal, and Howard Kunreuther
Retrieved From:
National Bureau of Economic Research: https://www.nber.org/
Media Type:
application/pdf
URL:
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