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A multicountry, multicommodity stochastic game theory network model of competition for medical supplies inspired by the Covid-19 pandemic

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  • Salarpour, Mojtaba
  • Nagurney, Anna

Abstract

In this paper, we construct the first stochastic Generalized Nash Equilibrium model for the study of competition among countries for limited supplies of medical items (PPEs, ventilators, etc.) in the disaster preparedness and response phases in the Covid-19 pandemic. The government of each country is faced with a two-stage stochastic optimization problem in which the first stage is prior to the pandemic declaration and the second stage is post the pandemic declaration. We provide the theoretical constructs, a qualitative analysis, and an algorithm, accompanied by convergence results. Both illustrative examples are presented as well as algorithmically solved numerical examples, inspired by the need for N95 masks and ventilators. The results reveal that, in addition to the preparedness of countries before the pandemic declaration, their ability to adapt to the conditions in different scenarios has a significant impact on their overall success in the management of the pandemic crisis. The framework can capture competition for other medical supplies, including Covid-19 vaccines and possible treatments, with modifications to handle perishability.

Suggested Citation

  • Salarpour, Mojtaba & Nagurney, Anna, 2021. "A multicountry, multicommodity stochastic game theory network model of competition for medical supplies inspired by the Covid-19 pandemic," International Journal of Production Economics, Elsevier, vol. 236(C).
    • Handle: RePEc:eee:proeco:v:236:y:2021:i:c:s0925527321000505
    DOI: 10.1016/j.ijpe.2021.108074
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    Cited by:

    1. Baloch, Gohram & Gzara, Fatma & Elhedhli, Samir, 2023. "Risk-based allocation of COVID-19 personal protective equipment under supply shortages," European Journal of Operational Research, Elsevier, vol. 310(3), pages 1085-1100.
    2. Ma, Jun & Nault, Barrie R. & Tu, Yiliu (Paul), 2023. "Customer segmentation, pricing, and lead time decisions: A stochastic-user-equilibrium perspective," International Journal of Production Economics, Elsevier, vol. 264(C).
    3. Imran Ali & Devika Kannan, 2022. "Mapping research on healthcare operations and supply chain management: a topic modelling-based literature review," Annals of Operations Research, Springer, vol. 315(1), pages 29-55, August.
    4. Gabriella Colajanni & Patrizia Daniele & Daniele Sciacca, 2022. "On the Provision of Services With UAVs in Disaster Scenarios: A Two-Stage Stochastic Approach," SN Operations Research Forum, Springer, vol. 3(1), pages 1-30, March.
    5. Georgia Fargetta & Antonino Maugeri & Laura Scrimali, 2022. "A Stochastic Nash Equilibrium Problem for Medical Supply Competition," Journal of Optimization Theory and Applications, Springer, vol. 193(1), pages 354-380, June.
    6. Yılmaz, Ömer Faruk & Yeni, Fatma Betül & Gürsoy Yılmaz, Beren & Özçelik, Gökhan, 2023. "An optimization-based methodology equipped with lean tools to strengthen medical supply chain resilience during a pandemic: A case study from Turkey," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    7. Anna Nagurney, 2022. "Supply chain networks, wages, and labor productivity: insights from Lagrange. analysis and computations," Journal of Global Optimization, Springer, vol. 83(3), pages 615-638, July.
    8. Asadpour, Milad & Olsen, Tava Lennon & Boyer, Omid, 2022. "An updated review on blood supply chain quantitative models: A disaster perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    9. Kar, Biswajit & Jenamani, Mamata, 2024. "Optimal multimodal multi-echelon vaccine distribution network design for low and medium-income countries with manufacturing infrastructure during healthcare emergencies," International Journal of Production Economics, Elsevier, vol. 273(C).
    10. Shao, Jianfang & Fan, Yu & Wang, Xihui & Liang, Changyong & Liang, Liang, 2023. "Designing a new framework agreement in humanitarian logistics based on deprivation cost functions," International Journal of Production Economics, Elsevier, vol. 256(C).
    11. Gabriella Colajanni & Patrizia Daniele & Anna Nagurney & Ladimer S. Nagurney & Daniele Sciacca, 2023. "A three-stage stochastic optimization model integrating 5G technology and UAVs for disaster management," Journal of Global Optimization, Springer, vol. 86(3), pages 741-780, July.
    12. Bal'azs Pej'o & Gergely Bicz'ok, 2021. "Games in the Time of COVID-19: Promoting Mechanism Design for Pandemic Response," Papers 2106.12329, arXiv.org, revised Feb 2022.

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