IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i24p16891-d1005031.html
   My bibliography  Save this article

A Model of Panic Buying and Workforce under COVID-19

Author

Listed:
  • Guohua He

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Zirun Hu

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

Abstract

Allowing there to be an undersupply of medical resources and infection amid the social workforce, this paper proposes a theory to show how panic buying is induced and how bad the workforce status could be. By developing a novel general equilibrium model, we find that for any retail price that is higher than the buyer’s reserve value, the buying competition will be induced and the medical resources supply will further be tightened. Moreover, if the transmission rate of COVID-19 surpasses the theoretical threshold that is proposed by this paper, the whole workforce in our simulated economy will inevitably be infected.

Suggested Citation

  • Guohua He & Zirun Hu, 2022. "A Model of Panic Buying and Workforce under COVID-19," IJERPH, MDPI, vol. 19(24), pages 1-14, December.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:24:p:16891-:d:1005031
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/24/16891/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/19/24/16891/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Keane, Michael & Neal, Timothy, 2021. "Consumer panic in the COVID-19 pandemic," Journal of Econometrics, Elsevier, vol. 220(1), pages 86-105.
    2. Hugo T. Y. Yoshizaki & Irineu de Brito Junior & Celso Mitsuo Hino & Larrisa Limongi Aguiar & Maria Clara Rodrigues Pinheiro, 2020. "Relationship between Panic Buying and Per Capita Income during COVID-19," Sustainability, MDPI, vol. 12(23), pages 1-14, November.
    3. Daron Acemoglu & Victor Chernozhukov & Iván Werning & Michael D. Whinston, 2021. "Optimal Targeted Lockdowns in a Multigroup SIR Model," American Economic Review: Insights, American Economic Association, vol. 3(4), pages 487-502, December.
    4. Grace Chua & Kum Fai Yuen & Xueqin Wang & Yiik Diew Wong, 2021. "The Determinants of Panic Buying during COVID-19," IJERPH, MDPI, vol. 18(6), pages 1-28, March.
    5. Yuen, Kum Fai & Tan, Lydia Sonia & Wong, Yiik Diew & Wang, Xueqin, 2022. "Social determinants of panic buying behaviour amidst COVID-19 pandemic: The role of perceived scarcity and anticipated regret," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    6. Qing-Hua Mao & Jiang-Xiao Hou & Peng-Zhen Xie, 2022. "Dynamic Impact of the Perceived Value of Public on Panic Buying Behavior during COVID-19," Sustainability, MDPI, vol. 14(9), pages 1-15, April.
    7. Zuokas, Danas & Gul, Evren & Lim, Alvin, 2022. "How did COVID-19 change what people buy: Evidence from a supermarket chain," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    8. Rithika Dulam & Kazuo Furuta & Taro Kanno, 2021. "Consumer Panic Buying: Realizing Its Consequences and Repercussions on the Supply Chain," Sustainability, MDPI, vol. 13(8), pages 1-24, April.
    9. Teyl Engstrom & Dolly O. Baliunas & Benjamin P. Sly & Anthony W. Russell & Peter J. Donovan & Heike K. Krausse & Clair M. Sullivan & Jason D. Pole, 2021. "Toilet Paper, Minced Meat and Diabetes Medicines: Australian Panic Buying Induced by COVID-19," IJERPH, MDPI, vol. 18(13), pages 1-9, June.
    10. Fernando Alvarez & David Argente & Francesco Lippi, 2021. "A Simple Planning Problem for COVID-19 Lock-down, Testing, and Tracing," American Economic Review: Insights, American Economic Association, vol. 3(3), pages 367-382, September.
    11. Kum Fai Yuen & Xueqin Wang & Fei Ma & Kevin X. Li, 2020. "The Psychological Causes of Panic Buying Following a Health Crisis," IJERPH, MDPI, vol. 17(10), pages 1-14, May.
    12. Janni Leung & Jack Yiu Chak Chung & Calvert Tisdale & Vivian Chiu & Carmen C. W. Lim & Gary Chan, 2021. "Anxiety and Panic Buying Behaviour during COVID-19 Pandemic—A Qualitative Analysis of Toilet Paper Hoarding Contents on Twitter," IJERPH, MDPI, vol. 18(3), pages 1-16, January.
    13. Naeem, Muhammad, 2021. "Do social media platforms develop consumer panic buying during the fear of Covid-19 pandemic," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    14. Chen, Tinggui & Jin, Yumei & Yang, Jianjun & Cong, Guodong, 2022. "Identifying emergence process of group panic buying behavior under the COVID-19 pandemic," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xunqing Wang & Nan Zhang & Hang Zhou & Xinpeng Huang & Rundong Luo, 2023. "Multi-Agent Evolutionary Game Analysis of Group Panic Buying in China during the COVID-19 Pandemic," Mathematics, MDPI, vol. 11(13), pages 1-24, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Irineu de Brito Junior & Hugo Tsugunobu Yoshida Yoshizaki & Flaviane Azevedo Saraiva & Nathan de Campos Bruno & Roberto Fray da Silva & Celso Mitsuo Hino & Larissa Limongi Aguiar & Isabella Marrey Fer, 2023. "Panic Buying Behavior Analysis according to Consumer Income and Product Type during COVID-19," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    2. Chen, Tinggui & Jin, Yumei & Yang, Jianjun & Cong, Guodong, 2022. "Identifying emergence process of group panic buying behavior under the COVID-19 pandemic," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    3. 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).
    4. Liu, Yanfeng & Cai, Lanhui & Ma, Fei & Wang, Xueqin, 2023. "Revenge buying after the lockdown: Based on the SOR framework and TPB model," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    5. Ashutosh Sarkar & Debadyuti Das & Arindam Debroy, 2024. "Panic Buying, Product Substitution and Channel-Shifting Behaviour During Pandemic," IIM Kozhikode Society & Management Review, , vol. 13(1), pages 25-43, January.
    6. Ali, Maged & Gomes, Lucas Moreira & Azab, Nahed & de Moraes Souza, João Gabriel & Sorour, M. Karim & Kimura, Herbert, 2023. "Panic buying and fake news in urban vs. rural England: A case study of twitter during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    7. Liu, Yanfeng & Li, Xue & Yuen, Kum Fai, 2023. "Revenge buying: The role of negative emotions caused by lockdowns," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    8. Ruzhi Xu & Chenglong Yan & Chenlong Wang & Huawei Zhao, 2023. "The Game Analysis among Governments, the Public and Green Smart Supply Chain Enterprises in Necessity Purchase and Supply during COVID-19 Pandemic," Sustainability, MDPI, vol. 15(9), pages 1-30, April.
    9. Goodkin-Gold, Matthew & Kremer, Michael & Snyder, Christopher M. & Williams, Heidi, 2022. "Optimal vaccine subsidies for endemic diseases," International Journal of Industrial Organization, Elsevier, vol. 84(C).
    10. Xiao Chen & Hanwei Huang & Jiandong Ju & Ruoyan Sun & Jialiang Zhang, 2022. "Endogenous cross-region human mobility and pandemics," CEP Discussion Papers dp1860, Centre for Economic Performance, LSE.
    11. Bisin, Alberto & Moro, Andrea, 2022. "Spatial‐SIR with network structure and behavior: Lockdown rules and the Lucas critique," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 370-388.
    12. Hausmann, Ricardo & Schetter, Ulrich, 2022. "Horrible trade-offs in a pandemic: Poverty, fiscal space, policy, and welfare," World Development, Elsevier, vol. 153(C).
    13. Carnehl, Christoph & Fukuda, Satoshi & Kos, Nenad, 2023. "Epidemics with behavior," Journal of Economic Theory, Elsevier, vol. 207(C).
    14. Facundo Piguillem & Liyan Shi, 2022. "Optimal Covid-19 Quarantine and Testing Policies," The Economic Journal, Royal Economic Society, vol. 132(647), pages 2534-2562.
    15. Stefan Pollinger, 2023. "Optimal Contact Tracing and Social Distancing Policies to Suppress A New Infectious Disease," The Economic Journal, Royal Economic Society, vol. 133(654), pages 2483-2503.
    16. Pol Antràs & Stephen J. Redding & Esteban Rossi-Hansberg, 2023. "Globalization and Pandemics," American Economic Review, American Economic Association, vol. 113(4), pages 939-981, April.
    17. Tarek Ben Hassen & Hamid El Bilali & Mohammad S. Allahyari & Sinisa Berjan & Darjan Karabašević & Adriana Radosavac & Goran Dašić & Ružica Đervida, 2021. "Preparing for the Worst? Household Food Stockpiling during the Second Wave of COVID-19 in Serbia," Sustainability, MDPI, vol. 13(20), pages 1-19, October.
    18. Glover, Andrew & Heathcote, Jonathan & Krueger, Dirk, 2022. "Optimal age-Based vaccination and economic mitigation policies for the second phase of the covid-19 pandemic," Journal of Economic Dynamics and Control, Elsevier, vol. 140(C).
    19. Brotherhood, Luiz & Jerbashian, Vahagn, 2023. "Firm behavior during an epidemic," Journal of Economic Dynamics and Control, Elsevier, vol. 147(C).
    20. Weichen Wang & Andrea Gurgone & Humberto Martínez & Maria Cristina Barbieri Góes & Ettore Gallo & Ádam Kerényi & Enrico Maria Turco & Carla Coburger & Pêdra D. S. Andrade, 2022. "COVID-19 Mortality and Economic Losses: The Role of Policies and Structural Conditions," JRFM, MDPI, vol. 15(8), pages 1-28, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:19:y:2022:i:24:p:16891-:d:1005031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.