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Unmasking the demand for masks: Analytics of mandating coronavirus masks

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  • Rajeev K. Goel
  • Shoji Haruna

Abstract

This paper analytically examines the demand for surgical masks following the recent health precautions due to coronavirus. Using a simple linear demand curve and alternatively examining the impacts of requirements that mandate (a) the wearing of masks by frontline workers; (b) suggested but not required masking by the whole public; and (c) compulsory masking by the whole public. The impacts of the different scenarios on the price elasticity of demand are determined along with the slope (or the rate of change) of elasticity. Some of these results differ when a non‐linear demand curve is considered instead. The equilibrium mask prices increase when masks are universally mandated, whereas the consumer surplus is higher when masks are recommended but not mandated. However, the ranking of consumer surplus is shown to be sensitive to the supply elasticity of masks. These considerations enable a structured means to view the demand implications of masking requirements and provide some food for policy thought.

Suggested Citation

  • Rajeev K. Goel & Shoji Haruna, 2021. "Unmasking the demand for masks: Analytics of mandating coronavirus masks," Metroeconomica, Wiley Blackwell, vol. 72(3), pages 580-591, July.
    • Handle: RePEc:bla:metroe:v:72:y:2021:i:3:p:580-591
    DOI: 10.1111/meca.12334
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    References listed on IDEAS

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    1. Rajeev K. Goel & Michael A. Nelson, 2021. "Drivers of COVID-19 vaccinations: vaccine delivery and delivery efficiency in the United States," Netnomics, Springer, vol. 22(1), pages 53-69, June.
    2. Angus Deaton, 1991. "Price Elasticities from Survey Data: Extensions and Indonesian Results," International Economic Association Series, in: Marc Nerlove (ed.), Issues in Contemporary Economics, chapter 10, pages 253-283, Palgrave Macmillan.
    3. Dave, Dhaval M. & Friedson, Andrew I. & Matsuzawa, Kyutaro & Sabia, Joseph J. & Safford, Samuel, 2020. "Black Lives Matter Protests, Social Distancing, and COVID-19," IZA Discussion Papers 13388, Institute of Labor Economics (IZA).
    4. Rajeev Goel, 2009. "Technological complementarities, demand, and market power," Netnomics, Springer, vol. 10(2), pages 161-170, October.
    5. Goel, Rajeev K. & Saunoris, James W. & Goel, Srishti S., 2021. "Supply chain performance and economic growth: The impact of COVID-19 disruptions," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 298-316.
    6. Seungil Yum, 2020. "Social Network Analysis for Coronavirus (COVID‐19) in the United States," Social Science Quarterly, Southwestern Social Science Association, vol. 101(4), pages 1642-1647, July.
    7. Feenstra, Robert C., 2003. "A homothetic utility function for monopolistic competition models, without constant price elasticity," Economics Letters, Elsevier, vol. 78(1), pages 79-86, January.
    8. Haruna Shoji & Goel Rajeev K., 2016. "International Tariffs in a Mixed Oligopoly with Research Spillovers," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(3), pages 277-293, August.
    9. Debreu, Gerard, 1974. "Excess demand functions," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 15-21, March.
    10. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, January.
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    Cited by:

    1. Lutz Peschke & Sotirios Gyftopoulos & Ayhan Kapusuzoğlu & Frans Folkvord & Yasemin Gümüş Ağca & Eleni Kaldoudi & George Drosatos & Nildağ Başak Ceylan & Leandro Pecchia & Seldağ Güneş Peschke, 2024. "Practices of Knowledge Exchange in the Context of the COVID-19 Pandemic," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 12881-12918, September.
    2. Aziz N. Berdiev & Rajeev K. Goel & James W. Saunoris, 2022. "Do disease epidemics force economic activity underground? International evidence," Contemporary Economic Policy, Western Economic Association International, vol. 40(2), pages 263-282, April.
    3. Rajeev K. Goel & Michael A. Nelson, 2023. "Aggressive COVID‐19 lockdown policies: What factors significantly drove them across nations?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2211-2222, June.
    4. Goel, Rajeev K. & Saunoris, James W. & Goel, Srishti S., 2021. "Supply chain performance and economic growth: The impact of COVID-19 disruptions," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 298-316.
    5. Alfano, Vincenzo & Capasso, Salvatore & Ercolano, Salvatore & Goel, Rajeev K., 2022. "Death takes no bribes: Impact of perceived corruption on the effectiveness of non-pharmaceutical interventions at combating COVID-19," Social Science & Medicine, Elsevier, vol. 301(C).
    6. Goel, Rajeev K. & Nelson, Michael A. & Goel, Viraat Y., 2021. "COVID-19 vaccine rollout—scale and speed carry different implications for corruption," Journal of Policy Modeling, Elsevier, vol. 43(3), pages 503-520.
    7. Rajeev K. Goel & Michael A. Nelson, 2024. "Ending COVID-19 vaccine apartheid through vaccine donations: the influence of supply chains," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 48(3), pages 592-613, September.
    8. Rajeev K. Goel & James R. Jones & James W. Saunoris, 2023. "Explaining vaccine hesitancy: A COVID‐19 study of the United States," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1073-1087, March.
    9. Rajeev K. Goel & James R. Jones, 2022. "Managing the risk of COVID‐19 via vaccine passports: Modeling economic and policy implications," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2578-2586, September.

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