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Demand for COVID-19 Antibody Testing and Why It Should Be Free

Author

Listed:
  • Marta Serra-Garcia

    (University of California, San Diego)

  • Nora Szech

    (Karlsruher Institut für Technologie)

Abstract

We study individual demand for COVID-19 antibody tests in an incentivized study on a representative sample of the US population. Almost 2,000 participants trade off obtaining an at-home test kit against money. At prices close to zero, 80 percent of individuals want the test. However, this broad support of testing falls sharply with price. Demand decreases by 19 percentage points per $10 price increase. Demand for testing increases with factors related to its potential value, such as age, increased length and strength of protective immunity from antibodies, and greater uncertainty about having had the virus. Willingness to pay for antibody tests also depends on income, ethnicity and political views. Trump supporters demonstrate significantly lower willingness to pay for testing. Black respondents, even if critical of Trump's approach to the crisis, pay less for testing than white and Hispanic respondents. If policy makers want a broad take-up of testing, the results suggest that tests should be free.

Suggested Citation

  • Marta Serra-Garcia & Nora Szech, 2020. "Demand for COVID-19 Antibody Testing and Why It Should Be Free," Working Papers 2020-036, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2020-036
    Note: MIP
    as

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    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Serra-Garcia_Szech_2020_understand-demand-COVID-antibody-test_r1.pdf
    File Function: Second version, May 25, 2020
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    Cited by:

    1. Peter A.G. van Bergeijk, 2021. "Pandemic Economics," Books, Edward Elgar Publishing, number 20401, June.
    2. Marta Serra-Garcia & Nora Szech, 2023. "Incentives and Defaults Can Increase COVID-19 Vaccine Intentions and Test Demand," Management Science, INFORMS, vol. 69(2), pages 1037-1049, February.
    3. Schünemann, Johannes & Strulik, Holger & Trimborn, Timo, 2023. "Anticipation of deteriorating health and information avoidance," Journal of Health Economics, Elsevier, vol. 89(C).
    4. Marta Serra-Garcia & Nora Szech, 2022. "The (In)Elasticity of Moral Ignorance," Management Science, INFORMS, vol. 68(7), pages 4815-4834, July.
    5. Simon Risanger & Bismark Singh & David Morton & Lauren Ancel Meyers, 2021. "Selecting pharmacies for COVID-19 testing to ensure access," Health Care Management Science, Springer, vol. 24(2), pages 330-338, June.
    6. Fallucchi, Francesco & Görges, Luise & Machado, Joël & Pieters, Arne & Suhrcke, Marc, 2021. "How to make universal, voluntary testing for COVID-19 work? A behavioural economics perspective," Health Policy, Elsevier, vol. 125(8), pages 972-980.
    7. Georgia Michailidou & Hande Erkut, 2022. "Lie O'Clock: Experimental Evidence on Intertemporal Lying Preferences," Working Papers 20220076, New York University Abu Dhabi, Department of Social Science, revised Apr 2022.

    More about this item

    Keywords

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    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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