Abstract
The world is experiencing a global pandemic with COVID-19, for which few measures have proven their efficiency. Prevention through lockdown belongs to the portfolio of Non-Pharmaceutical Intervention (NPI). The implementation of a lockdown comes with a potential health care benefit balanced with an economic and human cost: people are constrained to stay in their homes. Households hence have to live together in what we call “zero-space”, which means within the walls of their flat or house. The loss of “space-domain” freedom, preventing them to move in “free” space is accompanied by a continued “time-domain” freedom with the possibility to allocate their time, and what they do with it, within the location they are not permitted to leave (with very defined exceptions). We study the microeconomics framework in such a setting, starting from the rules shaping such a “nano-market” with very few agents (the members of the household), and its consequence for nano-economic interaction. Since the behaviour of the agents is hyperconstrained in the space domain and relatively free in the time domain, behavioral economics is used to describe decisions made in the home, for the actions remaining possible during lockdown. A minimal set of rules is introduced and illustrated to describe efficiently the agents at play in this new and particular context, which has been replicated worldwide during the pandemic. Hypotheses for this model are presented and discussed, so as to allow future variations and adaptations for other specific cases with different options chosen. Such hypotheses concern agents, their interests, behaviours, and the equivalent of non-financial “nano-market transactions and contracts”.
Highlights
COVID-19 was identified in Wuhan in December 2019 and spread rapidly worldwide, causing billions of infections and deaths, affecting every country [1,2,3]
To curb the spread of this pandemic, many governments have imposed, at different phases of the propagation of the virus, restrictive measures called Non-Pharmaceutical Interventions (NPI), which were the only ones available [6] prior to the development and availability of vaccines against the virus, and more recently of treatments for patients infected by the virus
Whenever possible, working online from home allowed some continuity of operations in the economy [7,8,9] beyond essential domains such as health care and food
Summary
COVID-19 was identified in Wuhan in December 2019 and spread rapidly worldwide, causing billions of infections and deaths, affecting every country [1,2,3]. To curb the spread of this pandemic, many governments have imposed, at different phases of the propagation of the virus, restrictive measures called Non-Pharmaceutical Interventions (NPI), which were the only ones available [6] prior to the development and availability of vaccines against the virus, and more recently of treatments for patients infected by the virus. Among those measures, which include reinforced hygiene and distance-keeping between humans, a last resort government intervention is home confinement of everyone, with exceptions such as health care or food sector workers. The light cast on this specific case is expected to provide an illustration of principles of behavioural economics, giving a sound starting base for nudging towards desired behaviours, which society needs during this pandemic
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
