Article
Version 1
Preserved in Portico This version is not peer-reviewed
A Complementary Micro Coronavirus Model Under Uncertrainty and Utility
Version 1
: Received: 14 May 2020 / Approved: 16 May 2020 / Online: 16 May 2020 (15:42:42 CEST)
How to cite: Gander, J. A Complementary Micro Coronavirus Model Under Uncertrainty and Utility. Preprints 2020, 2020050263. https://doi.org/10.20944/preprints202005.0263.v1 Gander, J. A Complementary Micro Coronavirus Model Under Uncertrainty and Utility. Preprints 2020, 2020050263. https://doi.org/10.20944/preprints202005.0263.v1
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.
Keywords
utility; uncertainty; risk averse; wellness output; treatment inputs; coronavirus; psychological risk attitude; dynamic interactions
Subject
Business, Economics and Management, Economics
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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