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Interaction in prevention: a general theory and an application to COVID-19 pandemic

Author

Listed:
  • Pietro Battiston

    (Università di Pisa
    Università di Parma)

  • Mario Menegatti

    (Università di Parma)

Abstract

We study a model introducing interactions in agents’ prevention effort, including both the case where agents’ efforts reinforce each others and the case where they are conflicting. We characterize best response functions, distinguishing the case of strategic complementarity and the case of strategic substitutability, and determine the features of Nash equilibria in both cases. We find conditions for under- and over-provision of prevention compared to its socially optimal level. Finally, we specialize our model to describe the risk of COVID-19 infection. We show the features of contagion are consistent with the existence of asymmetric equilibria and we provide arguments in favor of policy interventions, such as making face masks mandatory, despite the possibility that they reduce some agents’ effort.

Suggested Citation

  • Pietro Battiston & Mario Menegatti, 2025. "Interaction in prevention: a general theory and an application to COVID-19 pandemic," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 50(2), pages 205-231, September.
    • Handle: RePEc:pal:genrir:v:50:y:2025:i:2:d:10.1057_s10713-023-00092-3
    DOI: 10.1057/s10713-023-00092-3
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    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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