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Mitigating panic buying behavior in the epidemic: An evolutionary game perspective

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  • Shan, Haiyan
  • Pi, Wenjie

Abstract

The panic buying behavior under public health emergencies will lead to many adverse consequences, such as material waste, price fluctuation and uneven distribution of epidemic prevention materials, which will pose a threat to the social stability and economic development. In this paper, we construct a tripartite game model to explore the strategic choices of the public, merchants and the government in order to effectively respond to the panic buying behavior in the epidemic. The results demonstrate that: (1) Eight evolutionary stable strategies emerge in the panic buying events. The worst scenario can be improved by adjusting some relevant parameters. (2) The probability of the public choosing the strategy of “not involving in panic buying†depends on the potential benefits and losses of snapping up, rather than the extent of price rising. (3) The probability of merchants choosing the strategy of “not bid up price†depends on the intangible benefits. (4) The probability of the government choosing the strategy of “active supervision†depends on the supervision costs and government credibility, rather than the amount of fines. In addition, strategic suggestions to mitigate panic buying behavior are put forward from the perspective of each stakeholder.

Suggested Citation

  • Shan, Haiyan & Pi, Wenjie, 2023. "Mitigating panic buying behavior in the epidemic: An evolutionary game perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:joreco:v:73:y:2023:i:c:s096969892300111x
    DOI: 10.1016/j.jretconser.2023.103364
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