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AIDS policy and psychology: a mechanism-design approach.

Authors
  • Caplin, Andrew
  • Eliaz, Kfir
Type
Published Article
Journal
The Rand journal of economics
Publication Date
Jan 01, 2003
Volume
34
Issue
4
Pages
531–546
Identifiers
PMID: 14992228
Source
Medline
License
Unknown

Abstract

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.

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