IDEAS home Printed from https://ideas.repec.org/h/spr/lnopch/978-981-97-4045-1_44.html
   My bibliography  Save this book chapter

Subsidizing Professional or Amateur Manufacturers? Government Subsidy Policies for Emergency Medical Production During COVID-19

In: Liss 2023

Author

Listed:
  • Xiaowei Li

    (Beijing Jiaotong University)

  • Guowei Hua

    (Beijing Jiaotong University)

  • Shuai Liu

    (The Hong Kong Polytechnic University)

Abstract

Both professional and amateur manufacturers, subsidized by the governments, have joined the emergency production of personal protective equipment (PPE) to combat the COVID-19 pandemic. In this paper we examine the impacts of government financial subsidies on the pricing decisions of professional and amateur manufacturers and retailers concerning PPE supplies. Considering a two-supplier one-retailer supply chain, we build game-theoretic models and derive the players’ optimal pricing decisions. We explore the impacts of government subsidies under three different scenarios, namely subsidizing the manufacturers only, subsidizing the retailer only, and subsidizing both the manufacturers and retailer. Through sensitivity analyses of the key model parameters, we find that government subsidies can lower the retail price of PPE. We obtain the necessary conditions for when and how manufacturers and retailers should be subsidized to control the price of PPE. We also find that government subsidies can increase the consumers’ benefit by controlling their levels. Our study provides managerial insights on government subsidy policy design and the pricing decisions of substitute PPE supplies from different manufacturers during the pandemic.

Suggested Citation

  • Xiaowei Li & Guowei Hua & Shuai Liu, 2024. "Subsidizing Professional or Amateur Manufacturers? Government Subsidy Policies for Emergency Medical Production During COVID-19," Lecture Notes in Operations Research, in: Daqing Gong & Yixuan Ma & Xiaowen Fu & Juliang Zhang & Xiaopu Shang (ed.), Liss 2023, pages 572-582, Springer.
    • Handle: RePEc:spr:lnopch:978-981-97-4045-1_44
    DOI: 10.1007/978-981-97-4045-1_44
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lnopch:978-981-97-4045-1_44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.