Working Papers

COVID-19 Pandemic: Social Distancing, Public Policy, and Market Response

Krista Li

Indiana University

Xi Li

City University of Hong Kong

Nov 18, 2020

Develops a game-theoretic model of outcomes from interactions among several factors: consumers’ preference for social distancing and shopping on or offline; market structure (e.g., monopoly and duopoly); stores’ ability to sell through their own or other online channels; and third-party channel pricing strategies. Also sheds light on how various government bodies and policy makers can design effective policies using the example of COVID-19.

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