ABSTRACT
The emergence and spread of COVID-19 has severely impacted the tourism industry worldwide. In order to limit the effect of new pandemics or any unforeseen crisis, coordinated actions need to be adopted among tourism stakeholders. In this paper, we use an evolutionary game model to analyze the conditions that promote cooperation among different stakeholders in a tourism network to control high-risk crises. A data sample of 280 EU regions is used to define the tourism network of regions with a heterogeneous dependence on tourism. The results show that cooperation is helped by the existence of a structured tourism network. Moreover, cooperation is enhanced when coordination groups include small numbers of participants and when they are formed according to the similarity of tourism dependence.
ABSTRACT
The spread of COVID-19 and ensuing containment measures have accentuated the profound interdependence among nations or regions. This has been particularly evident in tourism, one of the sectors most affected by uncoordinated mobility restrictions. The impact of this interdependence on the tendency to adopt less or more restrictive measures is hard to evaluate, more so if diversity in economic exposures to citizens' mobility are considered. Here, we address this problem by developing an analytical and computational game-theoretical model encompassing the conflicts arising from the need to control the economic effects of global risks, such as in the COVID-19 pandemic. The model includes the individual costs derived from severe restrictions imposed by governments, including the resulting economic interdependence among all the parties involved in the game. By using tourism-based data, the model is enriched with actual heterogeneous income losses, such that every player has a different economic cost when applying restrictions. We show that economic interdependence enhances cooperation because of the decline in the expected payoffs by free-riding parties (i.e., those neglecting the application of mobility restrictions). Furthermore, we show (analytically and through numerical simulations) that these cross-exposures can transform the nature of the cooperation dilemma each region or country faces, modifying the position of the fixed points and the size of the basins of attraction that characterize this class of games. Finally, our results suggest that heterogeneity among regions may be used to leverage the impact of intervention policies by ensuring an agreement among the most relevant initial set of cooperators.
ABSTRACT
The current COVID-19 pandemic has impacted millions of people and the global economy. Tourism has been one the most affected economic sectors because of the mobility restrictions established by governments and uncoordinated actions from origin and destination regions. The coordination of restrictions and reopening policies could help control the spread of virus and enhance economies, but this is not an easy endeavor since touristic companies, citizens, and local governments have conflicting interests. We propose an evolutionary game model that reflects a collective risk dilemma behind these decisions. To this aim, we represent regions as players, organized in groups; and consider the perceived risk as a strict lock-down and null economic activity. The costs for regions when restricting their mobility are heterogeneous, given that the dependence on tourism of each region is diverse. Our analysis shows that, for both large populations and the EU NUTS2 case study, the existence of heterogeneous costs enhances global agreements. Furthermore, the decision on how to group regions to maximize the regions' agreement of the population is a relevant issue for decision makers to consider. We find out that a layout of groups based on similar costs of cooperation boosts the regions' agreements and avoid the risk of having a total lock-down and a negligible tourism activity. These findings can guide policy makers to facilitate agreements among regions to maximize the tourism recovery.