Economics of face masks through the lens of Chinese consumers during COVID-19: demand, supply, price, and willingness-to-pay

Although the COVID-19 pandemic is no longer a life-threatening pandemic, it has left behind economic challenges worldwide. During the outbreak, many governments mandated the use of face masks in public areas, resulting in its demand and market price immediately skyrocketing. The government may intervene in markets through price, which may lead to market misallocation. This article aims to investigate how consumers form their beliefs about face mask price changes based on their estimations of the market demand and supply, both with and without government intervention, and assess their willingness-to-pay (WTP) for face masks during the pandemic. The data was collected through an online survey of Chinese consumers in 2020. The results provide valuable insights for policymakers to better understand consumers' price expectations and WTP for face masks, enabling more effective government interventions to maintain market stability while ensuring consumer access to face masks.