Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

Epidemiological Data and Wuhan Pandemic

The lockdown is on the way of it being lifted but the cases continue to rise in India. The Wuhan virus does not seem anywhere near the peak at the moment. Yet there are signals from different quarters about need to open up the economy. As the economy begins to open up and the mobility is restored, the movement of people across the country is resulting in the Wuhan flu getting spread to other parts of the country. States like Karnataka, Orissa, Assam which had managed very well are now fighting hard to contain the disease thanks to the migration from states like Maharashtra, West Bengal among others. As the states and the centre begin the mitigating strategies, it becomes pertinent to have a look at the data before the appropriate strategic choices are made. Any decisions in the absence of signals from data are bound to be self-limiting and on the contrary generate numerous unintended consequences not necessarily pleasant.

 

It has been nearly 100 days since the cases began flowing in. Of course, India’s first case was in early February when three students returning from Wuhan tested positive in Kerala. Given the nearly one hundred days of tracking, Indian Council of Medical Research (ICMR) would have, in all probability, collected data on different physiognomies of the disease. The symptoms seem well known but more characteristics would be in order.

 

The importance of data lies in identifying pre-symptomatic and asymptomatic. It is pertinent to distinguish between the two. Current evidence indicates the low chance of infectiousness among the asymptomatic but high degree of spread among the pre-symptomatic. Further, incubation period has to be known. Evidence suggested that symptoms emerging on an average in five days but could extend upto fourteen days. That is how the fourteen day quarantine arose. If the symptoms are unlikely to emerge after seven days, the quarantine period can be reframed. The data now is available given the number of cases detected all over the world. In March, when the world began to shut down, very little was known about the characteristics of the Wuhan flu but in the last three months or so, sufficient data should help us in identifying the trends in incubation period and the peak periods of infectiousness.

 

If the virus loses its infectiousness after a certain period, the whole dynamics of lockdown will change. The data seems to suggest the median days of patient reporting negative test is ten days from the day of positive test. It is observed that more than 90% recover within three weeks. Residual traces of viruse might remain in the body with the tests continuing to report positive but the virus has lost its infectiousness. This was the foundation for the changed discharge policy not only in India but many other countries.

 

Another critical factor would be to identify the superspreader. Some spread the virus swift and wide whereas others hardly spread to anyone. Epidemics have generally recorded less than ten percent of the patients spreading the disease to around 70-80% of the people. The real work lies in identifying these superspreaders. One method is to undertake biological profile of these ‘Typhoid Mary’ s but that would be tedious taking a lot of time and resources. It would be interesting to see if there is a  linkage between the viral load and the spread of the disease.

 

The disease is self-resolving in nearly 80% of the cases. The spreaders seem to follow the Pareto law or the Gladwell law of the epidemics.  If the super spreaders are identified, then there is very little reason to fear others. Few precautions might well be in order to contain the spread of the Chinese flu. One method of this identification might be the viral load. If the viral load is high and contributes to high infectiousness, then the test results itself point to possible measures needed to be taken to arrest the disease. If low viral loads do not result in higher spread, the positive patients being asked to stay at home and reduce the contact could itself contain the disease. The problem here arises if the patient has to meet a lot of people as part of his or her daily life. Reproduction ratio might be low but the sheer number of people interacted might make large number of people affected. This creates hurdles for mitigation. Therefore, the viral load and its links with the reproduction ratio might be of crucial importance in pandemic management.

 

Therefore, it is desirable that ICMR makes these data available on the public domain. The data needs to comprise of the incubation period, the number of asymptomatic patients, the link between incubation period and infectiousness, the period of infectiousness, the reproduction ratio, changing nature of reproduction ratio with period of time, the recovery period, the viral loads in patients, the link between viral load and disease spread, the viral load and severity of the symptoms among others. More importantly, rather than the average recovery period, it is the median recovery period and the second quartiles which might be of more importance. Such data is also necessary for the incubation period. If the second quartile of incubation period is less, then the policy planning might be different in isolating the prospective patients than one wherein the first quartile of the incubation period itself is high. Furthermore, the reproduction ratio might not be constant and thus its characteristics over time need to be plotted.

 

Yet, for all the data that might have been recorded, ICMR has still not released the data. Incidentally, it has to release the data from the sero-survey tests which it has conducted in high risk areas. The test results from the use of hydroxychloroquinine (HCQ) among frontline workers and the disease incidence would also be very useful. At the moment, there is data scarcity from the ICMR, but hope that rich data would be forthcoming that could shape up the future strategy in reopening the economy.

 


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