Strategic Immunization and Group Structure
AbstractWe consider the spread of a harmful state through a population divided into two groups. Interaction patterns capture the full spectrum of assortativity possibilities. We show that a central planner who aims for eradication optimally either divides equally the resources across groups, or concentrates entirely on one group, depending on whether there is positive or negative assortativity, respectively. We study a game in which agents can, at a cost, immunize. Negative assortative interactions generate highly asymmetric equilibrium outcomes between ex ante identical groups. When groups have an underlying difference, even a small amount of intergroup contact generates large asymmetries. (JEL D71, D85)
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Journal: Microeconomics.
Volume (Year): 5 (2013)
Issue (Month): 2 (May)
Other versions of this item:
- Andrea Galeotti & Brian W. Rogers, 2012. "Strategic Immunization and Group Structure," Economics Discussion Papers 707, University of Essex, Department of Economics.
- Andrea Galeotti & Brian Rogers, 2012. "Strategic Immunization and Group Structure," Discussion Papers 1551, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Andrea Galeotti & Brian W. Rogers, 2012. "Strategic Immunization and Group Structure," Economics Discussion Papers 716, University of Essex, Department of Economics.
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
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