Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261017 
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 2020-03
Publisher: 
The University of Utah, Department of Economics, Salt Lake City, UT
Abstract: 
A micro decision-making utility model under uncertainty is presented as a complementary foundation for macro coronavirus models. The micro model consists of two functions, a risk averse utility function depending on wellness and a wellness random output which is a function of the input variable called "treatment" consisting of such elements as social distance, washing hands, wearing a face mask, and others. The decision maker selects a level of treatment that maximizes her/his expected utility, given the probabilities of the respective outputs. The focus is on how changes in a person's psychological attitude towards the macro determined (announced) probabilities affects the optimum results of the model. Such changes create a micro-macro dynamic interaction which is briefly outlined. A short discussion of the model's behavioral implications for health policy is also given.
Subjects: 
Utility
Uncertainty
Risk Averse
Wellness Output
Treatment Inputs
Coronavirus
Psychological Risk Attitude
and Dynamic Interactions
JEL: 
C02
C61
D11
D20
D81
D84
D91
I1
I18
Document Type: 
Working Paper

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