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 di erence, even a small amount of inter-group contacts generates large asymmetries. JEL Code: D61, H51, i14
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Bibliographic InfoPaper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1551.
Date of creation: 26 Jul 2012
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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 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-09 (All new papers)
- NEP-GTH-2012-09-09 (Game Theory)
- NEP-MIC-2012-09-09 (Microeconomics)
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