The Manali Trance: Economics of Abandoning Caution in the Time of Coronavirus

Abstract

The brutal second wave of the COVID-19 pandemic in India has left a significant death toll in its wake. Health experts advise that the imminent third wave can be delayed by following simple measures like wearing a mask and engaging in social distancing. However, near the end of the second wave, we witnessed a surge of tourists thronging the Mall Roads of Manali and Shimla, blatantly refusing to adhere to these safety protocols. Why are people abandoning caution despite knowing that it will only expedite the arrival of the third wave? In this article, we use a game-theoretic approach to rationalise the seemingly irrational decision-making to explain why the Manali holidayers are ignoring scientifically-backed safety measures.