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Social Interactions in Pandemics: Fear, Altruism, and Reciprocity

The onset of the COVID-19 pandemic has sparked a vivid debate on policies aiming to restrict mobility, the role of heterogeneity for their effectiveness, and the potential economic cost. As such, economies considering exit strategies from lockdowns seek to implement them in a way that does not endanger a robust recovery from the public health crisis. As the shape of the recovery is uncertain, a guiding principle for an optimal policy is to consider how the risk of disease has affected agents' behavior, which may not be uniform and could vary widely across regions and individuals.

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