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Strategic Immunization and Group Structure

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  • Andrea Galeotti
  • Brian Rogers

Abstract

We 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

Suggested Citation

  • Andrea Galeotti & Brian Rogers, 2012. "Strategic Immunization and Group Structure," Discussion Papers 1551, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  • Handle: RePEc:nwu:cmsems:1552
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    References listed on IDEAS

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    More about this item

    Keywords

    Diffusion; SIS; externalities;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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