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Related Concept Videos

Panic Disorder01:27

Panic Disorder

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Panic disorder is an anxiety disorder characterized by recurrent and sudden minutes-long episodes of intense fear, known as panic attacks. These attacks may feel like heart attacks and often happen without warning or a specific cause. They can include symptoms such as rapid heart rate, shortness of breath, chest pain, trembling, sweating, dizziness, and a sense of helplessness. During a panic attack, individuals may feel as though they are experiencing a heart attack or are in a...
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Anxiety: Overview01:18

Anxiety: Overview

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Anxiety is a common mental disorder featuring excessive worry, fear, and apprehension, significantly affecting daily life. People with anxiety disorders experience persistent and intense anxiety, interrupting their everyday functioning.
Individuals with anxiety often experience a range of physical and emotional symptoms, including sweating, trembling, tachycardia, and disturbances in sleep patterns. These symptoms vary in intensity and frequency but are generally disruptive and distressing.
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Preparedness and Phobias01:09

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Human fear responses to certain stimuli, such as darkness, heights, deep water, and blood, can often arise despite the absence of direct negative experiences. This phenomenon is rooted in evolutionary psychology, which posits that humans have developed a predisposition to fear stimuli that historically posed significant survival threats. This predisposition, known as preparedness, suggests that early humans who developed a fear of potentially dangerous entities, such as venomous snakes and...
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Pareto Chart00:52

Pareto Chart

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A Pareto chart is a bar graph or a combination of both line and bar graphs. The bar lengths represent the individual values or the frequency, while the lines represent the cumulative total values. In this chart, the longest bars are arranged on the left and the shortest bars on the right, which makes it easier to read and interpret the data. It can also be called a Pareto diagram or Pareto analysis.
The Pareto chart is named after the Italian economist Vilfredo Pareto, who described the Pareto...
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Generalized Anxiety Disorder01:30

Generalized Anxiety Disorder

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Generalized Anxiety Disorder (GAD) is a chronic condition characterized by excessive and uncontrollable worry that persists for at least six months, significantly interfering with daily functioning. Unlike situational anxiety, which arises in response to specific stressors, GAD often occurs without a clear cause. Individuals may experience disproportionate worry about work, health, or relationships. For instance, a person might continuously fear poor health despite normal medical evaluations or...
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The Availability Heuristic01:08

The Availability Heuristic

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A heuristic is a general problem-solving framework (Tversky & Kahneman, 1974). You can think of these as mental shortcuts that are used to solve problems. Different types of heuristics are used in different types of situations, and the impulse to use a heuristic occurs when one of five conditions is met (Pratkanis, 1989):
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Author Spotlight: Advancements in Multiplex Detection of Respiratory Viruses
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Consumer panic in the COVID-19 pandemic.

Michael Keane1, Timothy Neal1

  • 1University of New South Wales & CEPAR, Sydney, NSW 2000, Australia.

Journal of Econometrics
|September 1, 2020
PubMed
Summary

Consumer panic buying during COVID-19 was widespread, driven by virus spread and government restrictions. Early internal movement restrictions significantly increased panic, while stimulus and travel bans had less impact.

Area of Science:

  • Behavioral Economics
  • Epidemiology
  • Econometrics

Background:

  • The COVID-19 pandemic triggered unprecedented consumer behavior, including panic buying.
  • Understanding the drivers of consumer panic is crucial for effective public policy and supply chain management.
  • Previous research has not fully quantified the impact of virus transmission and policy interventions on consumer panic.

Purpose of the Study:

  • To develop an econometric model to analyze consumer panic during the COVID-19 pandemic.
  • To quantify the influence of virus transmission (domestic and global) and government policies on consumer panic.
  • To examine the temporal dynamics and cross-country variations in consumer panic.

Main Methods:

  • Constructed a daily consumer panic index for 54 countries (Jan-Apr 2020) using Google search data.
Keywords:
ConsumptionCoronavirusHoardingPanel dataPanic buying

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  • Collected data on government policy announcements (movement restrictions, stimulus, travel bans) and daily COVID-19 cases.
  • Employed an econometric model to assess the relationship between these factors and the consumer panic index.

    • Main Results:

    • Widespread consumer panic was observed globally, peaking in March 2020, with significant variations in timing and intensity.
    • Both domestic and global virus transmission significantly correlated with increased consumer panic.
    • Internal movement restrictions, especially those announced early, substantially boosted short-term panic, which subsided within 10 days. Stimulus announcements had minor effects, and travel restrictions showed no significant impact.

    Conclusions:

    • Consumer panic during the pandemic was a complex phenomenon influenced by both epidemiological factors and government responses.
    • The timing and nature of government policies, particularly internal movement restrictions, played a critical role in shaping panic buying.
    • Findings highlight the need for carefully timed and communicated policies to mitigate panic buying during health crises.