Reports Summarize CDC and FDA Findings from Cornell University (Social Distancing Game and Insurance Investment In a Pandemic): CDC and FDA

2023 AUG 16 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Research findings on CDC and FDA are discussed in a new report. According to news reporting out of Ithaca, New York, by NewsRx editors, research stated, “We consider a heterogeneous Susceptible-Infected-Recovered epidemic model, calibrated to the COVID-19 pandemic characteristics. We study the equilibrium of a voluntary social distancing game on a network of individuals subject to epidemic risk.”

Financial support for this research came from AXA Research Fund.

Our news journalists obtained a quote from the research from Cornell University, “We quantify the absolute and relative utility gaps across age cohorts. We further introduce life insurance in the model, which serves to mitigate the loss in the severe individual outcomes. We find that in most cases, insurance decreases the risk of contagion in the network because more individuals can be incentivized to self-isolate. On the other hand, in the case when the insurer does not have sufficient information on the self-isolation strategy of the individual, insurance can introduce moral hazard. We find that when premiums cannot be sufficiently differentiated, individuals may choose not to socially distance. This illustrates the importance of disclosing self-isolation strategies to the insurer, or inferring these strategies for the various types.”

According to the news editors, the research concluded: “Partial monitoring of social distancing strategy can mitigate the two problems of moral hazard and adverse selection.”

This research has been peer-reviewed.

For more information on this research see: Social Distancing Game and Insurance Investment In a Pandemic. Annals of Operations Research, 2023. Annals of Operations Research can be contacted at: Springer, Van Godewijckstraat 30, 3311 Gz Dordrecht, Netherlands. (Springer - www.springer.com; Annals of Operations Research - http://www.springerlink.com/content/0254-5330/)

Our news journalists report that additional information may be obtained by contacting Andreea Minca, Cornell University, School of Operations Research & Information Engineering, Ithaca, NY 14850, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s10479-023-05485-1. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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