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Strategic Immunization and Group Structure

Andrea Galeotti () and Brian Rogers

No 1551, Discussion Papers from Northwestern University, Center for Mathematical Studies in Economics and Management Science

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

Keywords: Diffusion; SIS; externalities (search for similar items in EconPapers)
Date: 2012-07-26
New Economics Papers: this item is included in nep-gth and nep-mic
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Journal Article: Strategic Immunization and Group Structure (2013) Downloads
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