Coronavirus and Game Theory
https://supernet.isenberg.umass.edu/articles/CompetitionforPPEs.pdf
The first link is an article from The Conversation, which discusses the shortage of PPE during the time of Coronavirus and the impact that Nash’s game theory could have on it. The article first mentions the difficulty that countries around the world experienced as the pandemic went on. It became harder to acquire PPE and other medical supplies, including N-95 masks, ventilators, and face shields. Many countries that made these items stopped exporting them or exported them in much smaller amounts. Due to the necessity, it eventually led to a shortage. This shortage caused an increase in the price of the PPE, specifically from around 50 cents to several dollars per item.
Since these issues do not seem to be leaving in the near future, scientists compared and analyzed these problems with game theory in mind. The second link is embedded in the original article, and it is the paper that was written to discuss the equilibrium solutions to help the shortage. As we recently learned in class, Nash Equilibrium occurs at the decisions that are the best responses to each other for each player in the game. Each player is a different healthcare organization. Their model takes penalties and inputs into account, which is beyond what we have looked at in class thus far. They found ways to more effectively produce N-95 makes using the equilibrium. Finally, they discovered that this equilibrium will occur with more places making these supplies, so more players must enter the game. In class, we learned how to find the Nash Equilibrium. Although all of these companies and countries are competing to make the most PPE and the most money, the successful Nash Equilibrium that the article states will be most beneficial for all companies and players in the game. It will also be most beneficial for the citizens- doctors, teachers, grocery store clerks, etc.- all people who need PPE to be in surplus for their everyday lives.