Panic buying
Panic buying refers to the behavior of individuals purchasing excessive quantities of specific items, typically in response to an impending disaster or crisis. This phenomenon is often driven by fear of shortages or the desire to profit from perceived scarcity, leading to significant disruptions in supply chains. When normal purchasing patterns are upended, people may lose confidence in the predictability of others' shopping behaviors, prompting them to stockpile essential goods. This reaction can stem from a concern that others will act selfishly, leaving insufficient supplies for those who are more considerate of communal needs. Panic buying has been notably observed during events like natural disasters or the COVID-19 pandemic, where items such as food and toilet paper were hoarded despite their availability. Experts suggest that interventions, such as purchase limits and transparent communication from retailers, can help mitigate the impact of panic buying by instilling consumer confidence. Understanding the psychological and social dynamics behind panic buying can shed light on this complex behavior and its consequences for communities.
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Panic buying
Panic buying is a behavior where people purchase and stockpile large quantities of specific items before, during, or immediately after a disaster or other event. The practice is driven by fear and/or greed. Some people buy large amounts of important items, such as food, out of concern that there will be a shortage. Others make mass purchases of things they think others will need or want for the purpose of reselling those items at a high profit. In either case, panic buying results in disruption to the supply chain and can create the very shortages that were feared.
Overview
Experts say that panic buying is tied to game theory, or the mathematical models of the interactions involved in social behaviors. According to the theory, when it comes to buying food and other life necessities, people’s actions are dependent on their confidence in others purchasing in a sensible manner. Most of the time, people only purchase what they need for a reasonable time period, such as a few days or a week, because they are confident that others will be acting in a similar manner and goods will be in stock when they return to buy more.
When a natural disaster or other situation that might restrict food access occurs, people lose this confidence in the predictable behavior of others and fear shortages. They panic and buy extra to ensure they have what they need. Sometimes, the lack of confidence is not in other shoppers but in the supply chain. They are concerned that there will be disruptions in making or transporting items to stores.
According to experts, panic buying is driven by either greed or fear. In both cases, panic buying can be the cause of, rather than a symptom of, the expected shortages.
Some people have a “look out for number one” mentality and buy large quantities of items to ensure they have them, with no regard for how others will manage. They may also wish to profit from the situation, in which case they buy large quantities to resell at high prices to people fearing the very shortage they helped create.
Other people panic buy out of fear. Experts say this situation is a little more complex. These people often do care about the needs of others and do not want to buy more than required by their immediate needs. However, they are also afraid that others are less caring and will not leave enough for future purchases. This concern about the selfish behavior of others can frequently cause otherwise responsible people to panic buy more than they need.
Sometimes, the items people panic purchase are easy to understand: in the event of a natural disaster, power and water may be cut off, causing people to buy large quantities of non-perishable foods, batteries, and bottled water. Other panic-driven purchases are harder to understand; for instance, researchers are baffled as to why people hoarded toilet paper at the beginning of the 2020 COVID-19 pandemic, as it was not in short supply and the disease did not create a special need for it.
Panic buying can be controlled to some extent. Stores can institute limits on purchases of items that are the subject of this type of shopping. Such became the case in 2020 when many stores began implementing a limit of two packs of toilet paper per shopper until the large demand for toilet paper subsided. They can also work to restore public confidence by understanding consumer behavior and reassuring people that supplies will be replenished.
Bibliography
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“The Science of Panic Buying and How to Stop it.” Psychology Today, 24 Mar. 2020, www.psychologytoday.com/us/blog/evidence-based-living/202003/the-science-panic-buying-and-how-stop-it. Accessed 24 Jan. 2025.
Southy Flora. “Panic Buying Amid Coronavirus Fears.” Food Navigator, 27 Mar. 2020, www.foodnavigator.com/Article/2020/03/27/Panic-buying-amid-coronavirus-fears-How-much-are-we-spending-and-why-is-it-a-problem#. Accessed 24 Jan. 2025.
Stiff, Chris. “The Game Theory of Panic Buying—and How to Reduce It.” The Conversation, 31 Mar. 2020, theconversation.com/the-game-theory-of-panic-buying-and-how-to-reduce-it-134107. Accessed 24 Jan. 2025.