Nash Social Distancing Games with Equity Constraints: How Inequality Aversion Affects the Spread of Epidemics

TL;DR

This paper models voluntary social distancing during epidemics using a game-theoretic approach, analyzing how inequality aversion influences epidemic spread and individual costs, with a focus on generalized Nash equilibria under inequality constraints.

Contribution

It introduces a novel analysis of social distancing games with inequality constraints, characterizing generalized Nash equilibria and demonstrating their impact on epidemic dynamics.

Findings

Inequality constraints slow down epidemic spread.

Vulnerable players experience lower costs under inequality constraints.

Non-vulnerable players may also benefit from inequality constraints.

Abstract

In this paper, we present a game-theoretic model describing voluntary social distancing during the spread of an epidemic. The payoffs of the agents depend on the social distancing they practice and on the probability of getting infected. We consider two types of agents, the non-vulnerable agents who have a small cost if they get infected, and the vulnerable agents who have a higher cost. For the modeling of the epidemic outbreak, we consider a variant of the SIR (Susceptible-Infected-Removed) model involving populations of susceptible, infected, and removed persons of vulnerable and non-vulnerable types. The Nash equilibria of this social distancing game are studied. The main contribution of this work is the analysis of the case where the players, desiring to achieve a low social inequality, pose a bound on the variance of the payoffs. In this case, we introduce and characterize a notion of Generalized Nash Equilibrium (GNE) for games with a continuum of players. Through numerical studies, we show that inequality constraints result in a slower spread of the epidemic and an improved cost for the vulnerable players. Furthermore, it is possible that inequality constraints are beneficial for non-vulnerable players as well.