ENDOGENOUS SOCIAL DISTANCING AND CONTAINMENT POLICIES IN SOCIAL NETWORKS

Can smart containment policies crowd out private efforts at social distancing? We analyse this question from the perspective of network formation theory. focus in particular on role externalities distancing choices. also look how these choices are affected by factors such as agents’ risk perception, speed policy intervention, structure underlying and presence strategic complementarities. argue that crowding is a problem when probability an outbreak may spread undetected relatively high (either because testing too infrequent or tests highly inaccurate). This case where choice relaxing generates largest negative externalities. Simulations real-world suggest more likely to occur when, absence interventions, face-to-face contacts perceived carry risk.