Effect of government subsidies on supply chain decision-making and coordination in the context of COVID-19

Considering the two-stage supply chain composed of a leading retailer and manufacturer under background covid-19 epidemic, determines anti-epidemic effort level bears corresponding costs, cost sharing rate coordination strategy. This paper analyzes pricing decision, different government subsidy measures strategies. From perspective Stackelberg game, we find that epidemic situation, subsidies can improve social welfare; improvement marginal income efforts is conducive to obtain higher Within reasonable revenue range efforts, strategy retailers’ welfare level, maximum by subsidizing manufacturers with sharing.