Emergency supplies requisition negotiation principle of government in disasters

Abstract

Purpose When disasters occur, the Chinese national or local government and their relevant departments (hereinafter referred to as the government) probably need to acquire emergency supplies from suppliers. Before concluding a transaction, the public officials usually negotiate the quality and price of the emergency supplies with the suppliers. They expect to achieve the best relief effect while the suppliers want to maximize their own interests. Therefore, in order to help the government acquire inexpensive emergency supplies with high quality in a short time, the purpose of this paper is to examine the negotiation process and proposes a negotiation principle for the staff. Design/methodology/approach This paper first elaborates the characteristics and impact factors of emergency supplies requisition negotiation. Then it establishes a model describing the negotiation on price and quality of emergency supplies between the public officials and suppliers. Afterwards, it proposes an algorithm which can estimate the success rate of the negotiation. Finally, the paper employs the conclusion of the model and algorithm to analyze the emergency supplies requisition negotiation process during the China Lushan earthquake. Findings This paper proposes a “WRAD” principle of emergency supplies requisition negotiation of public officials in disasters. First, they should ensure the requisition price is not too low. Second, they would widen the difference between the high price and low price. Third, it is best for them to follow the principle of “ascending negotiation and descending choice” while selecting multiple suppliers to negotiate. Originality/value This paper establishes a model to study the emergency supplies requisition negotiation process between the public officials and suppliers based on evolutionary game theory. The model assumes that both the public officials and suppliers are not fully rational individuals, and they need time to consult with each other to find out the optimal solution. This paper proposes an innovative action principle of the public officials during the negotiation process which can help it to acquire inexpensive, high-quality, emergency supplies within a short period from the suppliers.