Playing games with transmissible animal disease. Jonathan Cave Research Interest Group 6 May 2008

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Playing games with transmissible animal disease Jonathan Cave Research Interest Group 6 May 2008

Outline The nexus of game theory and epidemiology Some simple disease control games A vaccination game with perceived risk A game of interdependent risks Towards an elaborated structure Dynamics Differentiated interaction structures - (layered) networks The evolution of conventions Coevolution of structure and behaviour Different, differentiated diseases

The connection Game theory is concerned with strategic behaviour - reasoned (rational) choices made by interdependent agents: Players those who make conscious choices Strategies what the players choose Payoffs players preferences over combined choices (note: sometimes explicit rules translate choices into outcomes over which players have preferences) Information what players know about these things Epidemiology provides various ways to formalise dynamic interdependence Basis of a game-theoretic analysis can be supplied by an epidemiological model Payoffs affected by disease prevalence, incidence and (e.g.) market and welfare impact Strategies (for controlling disease, risks, impacts, etc.) determined by disease characteristics Information influenced by observed disease progress, choices (e.g. to notify, call in vets, etc.) Strategic behaviour in turn affects epidemiology Animal movements, contact Vaccination, culling, etc. This talk describes some simple models and their elaboration It tries to find common ground by using semi-mathematical language Hope is to get feedback on what s already old hat, what results are interesting, what extensions are promising

Game theory basics Player i s payoffs denoted U i ( i, -i,), where i ( -i ) are the strategies of I (and others) and is the state (not used in what follows) * is a Nash equilibrium at iff for all i and all s i i *, U i (*,) > U i (s i, -i *,) = U i (* s i,) (mutual best replies) Game is: symmetric if the strategy spaces and payoffs for each player are the same aggregate if each player s payoff depends on its own strategy and the distribution of other players strategies across the strategy set (the numbers playing each other strategy) Potential if there is a real-valued function P of the strategies whose joint maxima identify the Nash equilibria (Formally, for each I, and s i : P()-P( s i ) = U i ()-U i ( s i ) Example 1: a network of players playing 2-person games; i gets the average (or total) payoff from all his pairwise interactions Example 2: a market game where the payoff to player i depends on his output and the aggregate of others output Other solution concepts defined in terms of stability under specified dynamics: Evolutionary stability: no sufficiently good deviation will be copied Convergent stability: if many players adopt Q as an alternative to an equilibrium P and if payoff increases as players move closer to P than Q Replicator dynamics: the prevalence of strategies that do best among those currently played increases Players chosen at random select best replies to others strategies with high (but < 1) probability

A simple vaccination game In deciding whether to vaccinate, farmers consider (perceived) risk/cost of morbidity from vaccination (r V ) (perceived) probability of infection ( p, which depends on the uptake level p) (perceived) risk/cost of morbidity from infection (r I ) Decisions are indirectly influenced by others because the sum of others decisions determines vaccine coverage This simple model shows how risk/cost perception influences expected vaccine uptake and coverage and the role played by pathogens epidemiological characteristics All individuals have the same herd size, information and way to assess risk/costs

Static results Generally get stable convergence to homogeneous Nash equilibrium P* Expected variation in behaviour is here replaced by uniform mixed strategies: consider a combination of strategies P* and Q In, fractions and 1- play P* and an alternative Q (Uptake/coverage) p = P* + (1-)Q Payoff to playing P* is U(P*,, ) = V(P*, P* + (1-)Q) Payoff to playing Q is U(Q,, ) = V(Q, P* + (1-)Q) Advantage of playing P* rather than Q is A(P*,Q) = ( p )(P*-Q) Lemma: For any given, there is a unique P* s.t. A(P*,Q) > 0 for all Q P* and all > 0. Letting 0 shows that P*() is a Nash equilibrium If P and Q are not Nash, but P*-P < P*-Q then A(P,Q)>0 (stability) Theorem: if > 0 then the best reply to p = 0 is 0. Because higher p means lower p, the best reply to any p > 0 is also P i = 0, and the unique equilibrium is P* = 0. By the same token if if > 1 then the unique equilibrium is P* = 1. Otherwise, there is a unique internal solution where all players use a strategy P* such that P* =.

Adding the SIR model We add a standard SIR dynamic model: S 1 p SI S I SI I I R p I R = mean birth/death rate, = mean transmission rate, = 1/(infectious period), p = uptake. Assumes symmetrical mortality, no infection before (not) being vaccinated, etc. Steady-state uptake = coverage. Third equation is redundant (population balance). Rescale to = t/ (time in mean infectious period units), = / (infectious period in mean lifetimes) and R 0 = /(+) (2 o cases spawned by each 1 o case): S 1 p R0 1 SI S I R0 1 SI 1 I

Long-term behaviour Whether the disease becomes endemic or disappears depends on the coverage relative to a critical threshold: max R0 1, 0 p R0 If p p, the system converges to S* 1; otherwise, it converges to the endemic steady state E E p p S 1 p; I so henceforth we assume R0 1 and p 1 At coverage p, the long-term probability of infection for an unvaccinated animal depends on the relative rate at which it dies or becomes infected E E R0 1 S I 1 1 1 1 p E E E 0 0 R S I S R p This is independent of and thus of the birth/death rate and the infectious period. There is a mixed strategy (imperfect uptake) equilibrium if 1 << 0, or R0 1 1, so the equilibrium P* 1 R R 1 0 0

An illustration: impact of increasing R 0 (2 o cases per 1 o case) The LHS shows equilibrium uptake as a function of relative risk. Horizontal lines are elimination thresholds limit is step function at = 1. The RHS shows the impact of an upward shift in risk perception (from <1 to the new value ). The upper part is the incentive to switch vaccination practice; lower part is corresponding change in uptake (from old to new equilibrium P) as functions of new risk level. This shows that behaviour is more responsive as /(+) increases; and that recovery is slower than collapse

Implications For any positive perceived relative risk (>0), equilibrium uptake falls below the critical threshold and disease will become endemic unless there are additional compulsions or incentives to vaccinate. If vaccination is seen as riskier than infection (>1) no farmers will vaccinate in equilibrium. The minimal perceived risk above which there will be no vaccination is 1-1/R 0. This abstracts from heterogeneity, impact of actual course of disease and political/media responses on risk perceptions, risk aversion, etc.. During crises, perceived risks will rise; increased risk of infection morbidity have similar effects; if they cross the 0 threshold, the impacts can be profound.

A second model: interactive risk This model is based on the notion that precautions have spill over effects, which affect incentives to take care. Results depend on the direction of externalities (does A s precaution increase or decrease B s risk), the effectiveness of A s precaution for A s risk and the aggregation technology A player's risk depends (in this simple model) on his own precaution and a function of everyone else s; positive spillovers may be best effort (max), weakest link (min) or anything in between. The analysis connects two strands in the literature Tipping equilibrium - if failure to take precautions reduces others incentives, safety may collapse; if taking precautions increases others incentives, high-security cascade may result. Allows leadership Supermodularity (strategic complements) and submodularity (strategic substitutes) affects equilibrium existence, uniqueness, optimality

A classification scheme and summary analysis Case I: Partial effectiveness, negative externalities A s precautions reduce everyone s risk. The reduction is not complete, so A knows that others free-riding is costly to him. Single or multiple (homogeneous) equilibria with tipping One equilibrium dominates (high-precaution?), unique equilibrium may be optimal (e.g. if cost so low that each would want to take care even if no-one else did), but may not be (e.g. if costs so high that no-one wants to take care alone) Number taking precautions < socially optimal number Case II: Complete effectiveness, negative externalities A s precaution completely immunises him (and gives others some benefit). Typically unique equilibrium (no tipping), but incentive to take care falls as others do (or follow suit) Either full or no-precaution equilibrium could be efficient, but no guarantee Case III: Positive externalities A s investment increases others return and crowds out their investment Free-riding prevents multiple equilibrium Key is whether A s precaution encourages or discourages others and reciprocal impact on A

A more careful analysis 2x2 case Game played by agents choosing one of two strategies. Payoff depends on individual, aggregate choice. Simple case is each agent playing against others to whom it is linked payoff is average based on Payoff externalities: Substitutes if C-A < D-B Complements if C-A > D-B Precaution is risk dominant if A+B<C+D; no-precaution is risk-dominant if A+B>C+D Equilibrium regimes: Equilibrium I II III IV Description Unique no precaution Pure partial compliance Unique full precaution 2 uniform conventions

Conventions the local evolution model Each farm is near others as described by a graph a set of epidemiologically linked pairs (ij) Farm i s neighbourhood is N i () = {j: ij } i is chosen at random to rethink its behaviour: it chooses A best reply to strategies of N i () with probability 1- > 0 A mistake with probability The resulting Markov process converges almost surely To a risk-dominant equilibrium if there are two strategies per farm and all farms are linked to all other farms To a generalised stable strategy if there are more than 2 strategies To a (possibly) diverse allocation if the network has e.g. clusters Dynamics show tipping, cascades and (temporary) cycles

A classification of 2x2 case Best Worst Equil Pareto Risk Dom. Payoff Welfare A B C D I 1 Y a Y A B D C I 1 Y g Y A C B D I 1 Y a Y A C D B IV 1:2? a 1:2 A D B C IV 1:2 Y g 1:2 A D C B IV 1:2? g 1:2 B A C D I 1 Y b? B A D C I 1 Y d? B C A D II 2 na b Y B C D A II 2 na b Y B D A C I 0 Y d N B D C A II 2 na d? C A B D II 2 na a? C A D B III 0 N a N C B A D II 2 na b Y C B D A II 2 na b Y C D A B III 1 Y a? C D B A III 1 Y b? D A B C IV 1:2? g 1:2 D A C B IV 1:2 Y g 1:2 D B A C IV 1:2? d 1:2 D B C A III 1 Y d Y D C A B III 1 Y g Y D C B A III 1 Y d Y

A more general model N interdependent agents (i) p i risk faced by agent i L i loss incurred if risk fires c i cost of precaution (prevents direct loss) X i strategy (N, P (precaution)) I i ({K},X i ) expected indirect cost to i when {K} choose P and i chooses X i Only direct losses to i affect others so P protects others perfectly Expected payoffs to i s choice: P: c i + I i ({K},P) N: p i L i + (1-p i )I i ({K},N) is the non-additivity of harm, running from = 0 (suffer both direct and indirect damage) to = 1 (suffer either direct or indirect damage only go bankrupt once) Indifferent if c i = C*({K}) = p i L i +(1-p i )I i ({K},N) I i ({K},P) (take precaution if cost lower than C*({K}) Different situations Case I: I i ({K},P) = I i ({K},N) = I i ({K}) and = 1 so C*({K}) = p i [L i - I i ({K})]. I i falls as {K} gets bigger higher I i means lower C* C* rises, and tipping is possible. Case II: I i ({K},P) = 0 and = 1 so C* = p i L i +(1-p i )I i ({K},N) C* falls as {K} expands (I i raises the critical cost) Case III: I i ({K},P) = I i ({K},N) = I i ({K}) so C*({K}) = p i [I i ({K}) Investment i] C* again falls as {K} expands, but for a different reason (free-ride on others investments

Herd behaviour Consider a Nash equilibrium in which Xi = N, all i (no precaution). A critical mass is a coalition {K} such that if X i = P for all i in K then C j *({K}) > c j for all j not in K. [skipped for brevity results on existence, characterisation of smallest minimal critical mass coalition]

A Case I example Let r ij be the risk that infection from i transfers to j (r ii is the direct risk at farm i) with (common) loss L (P,P) is Pareto optimal in an area that strictly includes the shaded region (so it is optimal whenever it is an equilibrium) In the central area, tipping is possible With more than three farms, cascades are possible (following the costs) No precaution Precaution No precaution -[r 11 +(1-r 11 )r 21 ]L, -[r 22 +(1-r 22 )r 12 ]L -r 11 L, -c 2 -r 12 L Precaution -c 1 -r 21 L, -r 22 L -c 1, -c 2

Future directions Coevolution of structure and behaviour Path-dependence Degrees of public good -ness (between the full group and binary network models) Etc.