Willingness to limit “panic buying” during the COVID-19 crisis

Abstract

The research in this paper seeks to quantify the potential of a novel initiative to mitigate “panic buying” through appeals from “trusted change agents” (TCAs) that ask individuals to limit their purchases of critical supplies. TCAs are agents involved in disaster response efforts, such as local leaders and representatives of relief groups, that are deemed to be trustworthy by various segments of the population. To assess the effectiveness of these appeals, the authors conducted a survey of residents in the United States (U.S.) to characterize the respondents’ purchases of critical supplies made before, during, and after the pandemic. In addition, stated preference data were gathered about whether, and the extent to which, the respondents would react to a request from TCAs to limit their purchases of critical supplies. The results of the survey were used to: (i) assess the level of trust the respondents have in the various agents considered; (ii) estimate the expected impacts of TCAs’ requests in terms of changes in respondents’ purchasing behaviors; and (iii) estimate a Structural Equation Model-Multiple Indicators Multiple Causes (SEM-MIMIC) model that expresses the respondents’ willingness to limit purchases as a function of the socioeconomic attributes of the respondents. The research demonstrated that TCAs have substantial influence, with 58 % of respondents willing to limit purchases based on TCAs’ appeals. Firefighters, Emergency Responders, and Health Officials are the most trusted agents, with Firefighters having the highest expected impact (22.2 %). Joint appeals amplify impact, e.g., Firefighters combined with Local Government and Emergency Responders have an impact of 33.3 %. The SEM-MIMIC model also showed that socioeconomic variables affect trust in TCAs. The results of the research provide a pathway to mitigate “panic buying” and reduce the associated shortages. Based on the results obtained, the authors discuss the corresponding policy implications.