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Optimal test allocation

Author

Listed:
  • Ely, Jeffrey
  • Galeotti, Andrea
  • Jann, Ole
  • Steiner, Jakub

Abstract

A health authority chooses a binary action for each of several individuals that differ in their pretest probabilities of being infectious and in the additive losses associated with two types of decision errors. The authority is endowed with a portfolio of tests that differ in their sensitivities and specificities. We derive a simple necessary condition for optimality of test allocation. In special cases, precision parameters of the allocated test are monotone in the individuals' types. We characterize the marginal benefit of a test, provide an algorithmic solution for the test-allocation problem and consider the benefits of confirmatory testing.

Suggested Citation

  • Ely, Jeffrey & Galeotti, Andrea & Jann, Ole & Steiner, Jakub, 2021. "Optimal test allocation," Journal of Economic Theory, Elsevier, vol. 193(C).
    • Handle: RePEc:eee:jetheo:v:193:y:2021:i:c:s0022053121000533
    DOI: 10.1016/j.jet.2021.105236
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    References listed on IDEAS

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    Cited by:

    1. Hu, Ju & Zhou, Zhen, 2022. "Disclosure in epidemics," Journal of Economic Theory, Elsevier, vol. 202(C).
    2. Mark Whitmeyer, 2021. "An imperfect test for a virus can Be worse than No test at all," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1347-1360, June.
    3. Carnehl, Christoph & Fukuda, Satoshi & Kos, Nenad, 2023. "Epidemics with behavior," Journal of Economic Theory, Elsevier, vol. 207(C).
    4. Joshua S. Gans, 2022. "Test sensitivity for infection versus infectiousness of SARS‐CoV‐2," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1880-1887, September.
    5. Lipnowski, Elliot & Ravid, Doron, 2021. "Pooled testing for quarantine decisions," Journal of Economic Theory, Elsevier, vol. 198(C).
    6. Dirk Bergemann & Yang Cai & Grigoris Velegkas & Mingfei Zhao, 2022. "Is Selling Complete Information (Approximately) Optimal?," Cowles Foundation Discussion Papers 2324, Cowles Foundation for Research in Economics, Yale University.
    7. Daron Acemoglu & Ali Makhdoumi & Azarakhsh Malekian & Asuman Ozdaglar, 2020. "Testing, Voluntary Social Distancing and the Spread of an Infection," NBER Working Papers 27483, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Test allocation; Epidemy control; Test sensitivity and specificity;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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