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AIDS Policy and Psychology: A Mechanism-Design Approach

Author

Listed:
  • Caplin, Andrew
  • Eliaz, Kfir

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.

Suggested Citation

  • Caplin, Andrew & Eliaz, Kfir, 2003. " AIDS Policy and Psychology: A Mechanism-Design Approach," RAND Journal of Economics, The RAND Corporation, vol. 34(4), pages 631-646, Winter.
  • Handle: RePEc:rje:randje:v:34:y:2003:i:4:p:631-46
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    Citations

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    Cited by:

    1. Simeon Schudy & Verena Utikal, 2015. "Does imperfect data privacy stop people from collecting personal health data?," TWI Research Paper Series 98, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    2. Bierbrauer, Felix & Netzer, Nick, 2016. "Mechanism design and intentions," Journal of Economic Theory, Elsevier, vol. 163(C), pages 557-603.
    3. repec:gam:jgames:v:9:y:2018:i:1:p:14-:d:134809 is not listed on IDEAS
    4. Michael Hoy & Richard Peter & Andreas Richter, 2014. "Take-up for genetic tests and ambiguity," Journal of Risk and Uncertainty, Springer, vol. 48(2), pages 111-133, April.
    5. repec:eee:gamebe:v:104:y:2017:i:c:p:632-655 is not listed on IDEAS
    6. Fels, Markus, 2015. "On the value of information: Why people reject medical tests," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 56(C), pages 1-12.
    7. Francesca Barigozzi & Rosella Levaggi, 2010. "Emotional decision-makers and anomalous attitudes towards information," Journal of Risk and Uncertainty, Springer, vol. 40(3), pages 255-280, June.
    8. Eliaz, Kfir & Spiegler, Ran, 2006. "Can anticipatory feelings explain anomalous choices of information sources?," Games and Economic Behavior, Elsevier, vol. 56(1), pages 87-104, July.
    9. repec:eee:jhecon:v:55:y:2017:i:c:p:95-107 is not listed on IDEAS
    10. Hoel, Michael & Iversen, Tor & Nilssen, Tore & Vislie, Jon, 2006. "Genetic testing in competitive insurance markets with repulsion from chance: A welfare analysis," Journal of Health Economics, Elsevier, vol. 25(5), pages 847-860, September.
    11. Simeon Schudy & Verena Utikal, 2012. "The Influence of (Im)perfect Data Privacy on the Acquisition of Personal Health Data," Working Paper Series of the Department of Economics, University of Konstanz 2012-12, Department of Economics, University of Konstanz.
    12. Zanella, Giulio & Banerjee, Ritesh, 2016. "Experiencing breast cancer at the workplace," Journal of Public Economics, Elsevier, vol. 134(C), pages 53-66.
    13. Immordino, Giovanni & Menichini, Anna Maria C. & Romano, Maria Grazia, 2011. "A simple impossibility result in behavioral contract theory," Economics Letters, Elsevier, vol. 113(3), pages 307-309.
    14. Gottlieb, Daniel, 2014. "Imperfect memory and choice under risk," Games and Economic Behavior, Elsevier, vol. 85(C), pages 127-158.
    15. Schweizer, Nikolaus & Szech, Nora, 2016. "Optimal revelation of life-changing information," Working Paper Series in Economics 90, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
    16. Nikolaus Schweizer & Nora Szech, 2016. "Optimal Revelation of Life-Changing Information," CESifo Working Paper Series 5941, CESifo Group Munich.

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