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On Mask Wearing in Environments With and Without a Mask Mandate

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  • Batabyal, Amitrajeet

Abstract

We analyze an office environment with two types of workers. The first type believes that masks offer little or no protection against Covid-19 and hence this type does not wear a mask. The second type wants to protect itself from Covid-19 and therefore this type does wear a mask. By not wearing a mask, the first type of worker imposes an externality on the second type of worker. In this setting, we accomplish five tasks. First, ignoring the externality, we compute the number of hours during which the first type of worker does not wear a mask. Second, we ascertain the socially optimal number of hours during which a worker of the first type ought not to wear a mask. Third, we determine the optimal tax needed to decentralize the social optimum. Fourth, assuming that there is no mask mandate, we analyze the outcome when we allow for Coasian bargaining between the two types of workers. Finally, assuming that there is a mask mandate, we study the outcome when, once again, there is Coasian bargaining between the two types of workers.

Suggested Citation

  • Batabyal, Amitrajeet, 2022. "On Mask Wearing in Environments With and Without a Mask Mandate," MPRA Paper 116197, University Library of Munich, Germany, revised 01 Feb 2023.
    • Handle: RePEc:pra:mprapa:116197
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    References listed on IDEAS

    as
    1. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    2. Leo H. Kahane, 2021. "Politicizing the Mask: Political, Economic and Demographic Factors Affecting Mask Wearing Behavior in the USA," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(2), pages 163-183, April.
    3. Karaivanov, Alexander & Lu, Shih En & Shigeoka, Hitoshi & Chen, Cong & Pamplona, Stephanie, 2021. "Face masks, public policies and slowing the spread of COVID-19: Evidence from Canada," Journal of Health Economics, Elsevier, vol. 78(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Covid-19; Externality; Mask; Social Optimum; Tax;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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