2003/01/01 by Andrew Caplin, Kfir Eliaz · 1 citation
Decision Sciences · Social Sciences · #Experimental Behavioral Economics Studies #Game Theory and Applications #Income, Poverty, and Inequality
paper · doi:10.2307/1593781
openalex publication_date 2003/01/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/06/11
Economic theorists have given little attention to health-related externalities, such as those involved in the spread of AIDS. One reason for this is the critical role played by psychological factors, such as fear of testing, in the continued spread of the disease. We develop a model of AIDS transmission that acknowledges this form of fear. In this context we design a mechanism that not only encourages testing but also slows the spread of the disease through voluntary transmission. Our larger agenda is to demonstrate the power of psychological incentives in the public health arena.