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Procedure for decision analysis on prevention against animal diseases: an application of Game Theory

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Author(s):
Luciana Torrezan Silveira
Total Authors: 1
Document type: Doctoral Thesis
Press: Piracicaba.
Institution: Universidade de São Paulo (USP). Escola Superior de Agricultura Luiz de Queiroz (ESALA/BC)
Defense date:
Examining board members:
Heloisa Lee Burnquist; Danilo Rolim Dias de Aguiar; Mirian Rumenos Piedade Bacchi; Geraldo Sant Ana de Camargo Barros; Decio Zylbersztajn
Advisor: Heloisa Lee Burnquist
Abstract

The basic hypothesis of this study is that producers do not perceive, individually, the importance of adopting prevention measures, even when aware of the economic risks for them and for the local economy, because the outbreaks of some diseases are not frequent. Moreover, the presence of externalities is such that the action of one producer regarding sanitary measures of the herd affects other producers in the same region, which also cannot be perceived by them. This study aims to develop a theoretical procedure to infer about strategic decisions taken by producers to prevent animal disease in their herds, in face of the risk of contamination. The development of the model is based on the Game Theory, and the benefit cost analysis as support for producer\'s decision. After modeling the problem and determining the equilibriums, these are used to elaborate inferences about possible actions of the government through economic incentives (such as indemnities and fines) to encourage the prevention. Then, the theoretical model is applied to a specific case of a foot-and-mouth disease (FMD) outbreak in Brazil. The results indicate that in the absence of a differential market for non-vaccinated animals, the game equilibrium tends to the situation where producer\'s decisions are to vaccinate their herd, suggesting that government intervention is not necessary. Even though, the Brazilian government uses incentive policies for the cattle vaccination since some producers do not vaccinate their animals, despite of their awareness of the risks, which suggests lack of rationality. Considering the irrationality of some producers, this study is important for them to delineate decisions scenes, identifying the best actions to be taken in the collective context. (AU)

FAPESP's process: 04/00417-0 - Brazilian sugar exports: a price analysis
Grantee:Luciana Torrezan Silveira
Support Opportunities: Scholarships in Brazil - Doctorate (Direct)