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AIDS Policy and Psychology: A Mechanism-Design Approach

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Author Info
Caplin, Andrew
Eliaz, Kfir

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Abstract

Economic theorists have given little attention to health-related externalities, such as those involved in the spread of AIDS. One reason for this is the critical role played by psychological factors, such as fear of testing, in the continued spread of the disease. We develop a model of AIDS transmission that acknowledges this form of fear. In this context we design a mechanism that not only encourages testing but also slows the spread of the disease through voluntary transmission. Our larger agenda is to demonstrate the power of psychological incentives in the public health arena. Copyright 2003 by the RAND Corporation.

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Publisher Info
Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 34 (2003)
Issue (Month): 4 (Winter)
Pages: 631-46
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Handle: RePEc:rje:randje:v:34:y:2003:i:4:p:631-46

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  1. Morrow, John & Sivan, Yoav, 2006. "Strategic Interaction in the Sex Market," MPRA Paper 4327, University Library of Munich, Germany, revised 31 Jul 2007. [Downloadable!]
  2. Richard G. Frank, 2004. "Behavioral Economics and Health Economics," NBER Working Papers 10881, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-13.


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