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A number of behavioral economic insights suggest we will tend to overreact, individually and collectively, to a new, serious, but low probability health threat, like Covid 19. To respond more effectively to such threats, we should recognize why we will tend to overreact and prepare in advance not to do so. We also should recognize the usefulness in giving lower level governments, non-profits, and less formal communities some ability to respond, rather than presuming we should address a significant threat like Covid using the highest level of government.
Mind & Society – Springer Journals
Published: Jun 1, 2022
Keywords: Covid; Loss aversion; Status quo bias; Certainty effect; Ambiguity; Emotion
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