Analysis of taiwan’s mask collection and plan evasion during the covid-19 pandemic

Abstract

This study established a two-stage dynamic game strategy to analyze how the planned quota and price of masks were set and why mask manufacturing firms on the national mask team (NMT) in Taiwan evaded the plan. Plan evasion occurred when the NMT decided to produce less than the quota set by the government, even though they were incentivized and able to produce more. Taiwan’s experience shows that through the collection of masks and the Name-Based Mask Rationing System, the people’s right to procure masks can be guaranteed; however, to promote market transaction efficiency, the government should adopt a lower quota for the collection of masks and allow firms to freely sell them in the market after they complete their plans. The self-interest of the government played a key role in inducing plan evasion.