Does government purchase commitment promote regular production to emergency co-production? Differential game analysis on manufacturers' production strategy.

ABSTRACT:

Background

As destructive diseases, governments increasingly utilize emergency co-production to satisfy the keen need for medical products. Although governments have provided purchase commitment payments to promote co-production with manufacturers, research has mainly focused on regular medical production without purchase commitment payment, whereas research on emergency co-production with purchase commitments remains scarce.

Method

Our study fills the gap by analyzing the regular and emergency co-production models using differential game approaches to optimize purchase commitment.

Results

First, we find that even if the production and storage costs are relatively high, the emergency co-production mode sometimes has a higher production rate than the regular medical pr

SUBMITTER: Li T 

PROVIDER: S-EPMC12705571 | biostudies-literature | 2025

REPOSITORIES: biostudies-literature