Stolen from oz site @ Sultanarama
Our game with the virus
The nature of our strategic interaction with SARS-CoV-2 (which causes COVID-19) is one where it attacks us, and we interact with one another. The players are the virus, the community and our policymakers who (to an extent that depends on compliance) control some of the rules of the game – namely, how much we interact with one another.
The payoff to the virus is simple. It wants to infect as many of us as possible.
The payoffs to us are more complicated – a combination of health and economic effects.
Economists like to distinguish between games that are played once, games that are repeated more than once but where the rules, players, and payoffs are the same each time, and games where players move in sequence. What we are always interested in is the game’s equilibrium, and the payoffs to the players in that equilibrium.
What we are seeing right now in Australia, in terms of the health and economics outcomes, is an equilibrium phenomenon.
We’ve put in place certain social-distancing rules – not as strict as some jurisdictions but stricter and sooner than others – and the economy is taking a hit because of the measures.
Official data show we are “flattening the curve”.