Pricing decisions of converted and expanded enterprises for medical supplies under major public health emergencies

Background Major public health emergencies often trigger severe imbalances between the supply and demand of medical supplies, resulting in substantial price fluctuations and reduced allocation efficiency. The rapid entry of converted and capacity-expanding enterprises into medical supply production further complicates pricing dynamics, particularly under government intervention policies. Methods To investigate optimal pricing decisions under emergency conditions, this study integrates an epidemiological SEIR framework with an economic decision model and develops a Stackelberg game involving converted and expanded manufacturers under government subsidy schemes. Pricing strategies are compared under decentralized competitive and centralized cooperative scenarios to evaluate differences in market outcomes and welfare performance. Results The data suggest that decentralized competition among businesses results in inflated prices and diminished efficiency in resource allocation. Conversely, collaborative pricing and resource integration demonstrably enhance firm profitability and contribute to greater overall social welfare. Furthermore, when production costs rise for manufacturers that have undergone conversion, the adverse impacts of cost escalation can be mitigated through the redistribution of demand among enterprises. Conclusion This research furnishes a theoretical basis for pricing strategies concerning medical supplies during significant public health crises. The findings offer practical guidance for policymakers in the formulation of effective subsidy mechanisms and price regulation policies, thereby fortifying emergency medical supply systems. This study provides a theoretical foundation for pricing strategies of medical supplies during major public health emergencies. The results offer practical insights for policymakers in designing effective subsidy mechanisms and price regulation policies, thereby strengthening emergency medical supply.