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Infectious disease detection with private information:

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  • Saak, Alexander E.

Abstract

In this paper we study incentives to report clinically suspect situations in a simple model of an infectious animal disease with limited diagnostic resource. We characterize a transfer scheme that sustains credible reporting and implements an efficient test allocation. In a game without monetary transfers, credible reporting and first-best targeted testing are achievable in both laissez-faire and efficient disease control regimes when the disease occurrence among few well-informed producers is unlikely. When the number of producers is small, random testing is optimal under mandatory depopulation of untested animals, but credible reporting can be necessary for testing to improve welfare under laissez-faire disease control if private information is sufficiently precise. When the number of producers is large, random testing always improves welfare, and if private information is precise, disease occurrence is unlikely, and testing capacity is small, efficient testing is achievable without transfers in the efficient disease control regime.

Suggested Citation

  • Saak, Alexander E., 2012. "Infectious disease detection with private information:," IFPRI discussion papers 1162, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1162
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    1. Richard D. Horan & Eli P. Fenichel & Christopher A. Wolf & Benjamin M. Gramig, 2010. "Managing Infectious Animal Disease Systems," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 101-124, October.
    2. Olmstead, Alan L. & Rhode, Paul W., 2004. "An Impossible Undertaking: The Eradication of Bovine Tuberculosis in the United States," The Journal of Economic History, Cambridge University Press, vol. 64(03), pages 734-772, September.
    3. Benjamin M. Gramig & Richard D. Horan & Christopher A. Wolf, 2008. "Livestock Disease Indemnity Design When Moral Hazard Is Followed by Adverse Selection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 627-641.
    4. Anup Malani & Ramanan Laxminarayan, 2011. "Incentives for Reporting Infectious Disease Outbreaks," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 176-202.
    5. Glenn Sheriff & Daniel Osgood, 2010. "Disease Forecasts and Livestock Health Disclosure: A Shepherd's Dilemma," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 776-788.
    6. McGee, Andrew & Yang, Huanxing, 2013. "Cheap talk with two senders and complementary information," Games and Economic Behavior, Elsevier, vol. 79(C), pages 181-191.
    7. Kuchler, Fred & Hamm, Shannon, 2000. "Animal disease incidence and indemnity eradication programs," Agricultural Economics, Blackwell, vol. 22(3), pages 299-308, April.
    8. Jennifer Ifft & David Roland-Holst & David Zilberman, 2011. "Production and Risk Prevention Response of Free Range Chicken Producers in Viet Nam to Highly Pathogenic Avian Influenza Outbreaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 490-497.
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    Keywords

    Disease; private information;

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