Eleven percent of the Malawian population is HIV infected. Eighteen percent of sexual encounters are casual. A condom is used one quarter of the time. A choice-theoretic general equilibrium search model is constructed to analyze the Malawian epidemic. In the developed framework, people select...

Eleven percent of the Malawian population is HIV infected. Eighteen percent of sexual encounters are casual. A condom is used one quarter of the time. A choice-theoretic general equilibrium search model is constructed to analyze the Malawian epidemic. In the developed framework, people select...

We propose a rational theory of sexual behavior, where people explicitly take the risk of HIV infection into account. Risky sex has two margins: the use of condoms and engaging in extra-marital affairs. The model exhibits important general equilibrium effects since an increase in the overall...