Modern Australian
Times Advertising

Stocking up to prepare for a crisis isn't 'panic buying'. It's actually a pretty rational choice

  • Written by David A. Savage, Associate Professor of Behavioural Economics , Newcastle Business School, University of Newcastle

Recent days have brought reports of shoppers clearing out supermarket shelves from Wuhan and Hong Kong to Singapore and Milan in response to the spread of coronavirus. This behaviour is often described as “panic buying”.

However, the research shows that what’s going on here is nothing to do with panic. It’s a perfectly rational response to the situation.

Responding to disaster

Panic is one of the most misunderstood and misinterpreted of all human behaviours. The common, traditional understanding of the phenomenon is based on myth rather than reality.

If we understand panic as a state of uncontrollable fear that drives irrational behaviour, then how people usually respond in the face of disaster is something else entirely.

It’s a common belief that social law breaks down in a disaster. In the Hollywood version, chaos ensues and people act in illogical or unreasonable ways. The reality is very different.

Most research rejects the notion of a “disaster syndrome” described as a state of stunned shock or the occurrence of mass panic. In real disasters, people usually hold on to tenets of acceptable behaviour such as morality, loyalty, and respect for law and customs.

Planning ahead

If we are not seeing panic, what are we seeing? Unlike most animals, humans can perceive some future threats and prepare for them. In the case of something like the coronavirus, one important factor is the speed at which information can be shared around the world.

We see empty streets in Wuhan and other cities, where people are unable or unwilling to go outside for fear of contracting the virus. It is natural that we want to prepare for the perceived threat of similar disruption to our own communities.

Read more: Vital Signs: a connected world makes this coronavirus scarier, but also helps us deal with it

Stocking up on food and other supplies helps people feel they have some level of control over events. It is a logical thought process: if the virus comes to your area, you want to be able to reduce your contact with others but also ensure you can survive that withdrawal period.

The greater the perceived threat, the stronger the reaction will be. At this stage it is believed that virus has an incubation period of up to 14 days, so people want to be prepared for at least 14 days of isolation.

Stocking up to prepare for a crisis isn't 'panic buying'. It's actually a pretty rational choice Bare supermarket shelves are often a sign of preparation, not panic. Andrea Canali / EPA

A reasonable response

Preparing for a period of isolation is not the result of an extreme or irrational fear but rather an expression of our ingrained survival mechanisms. Historically, we had to protect ourselves from things such as harsh winters, failing crops or infectious diseases, without the aid of modern social institutions and technologies.

Stocking up on supplies is a valid response. It indicates citizens are not helplessly reacting to an outside circumstance but instead are thinking forward and planning for a possible situation.

While part of this response is due to the urge for self-reliance, it may also be a herd behaviour to some extent. A herd behaviour is one driven by imitating what others do – these behaviours can be a kind of conditional cooperation with others (for example, yawning).

Erring on the side of caution

A lot of uncertainty surrounds disasters, which means all advanced decisions are made on the basis of perceived threats not the actual disaster itself. Because of this uncertainty, people tend to overreact. We are generally risk-averse and aim to prepare for the worst-case scenario rather than the best.

When it comes to stocking up (or hoarding) a large private collection of goods to see us through a disaster, we don’t know how much we will need because we don’t know how long the event will last.

Accordingly, we tend to err on the side of caution and buy too much rather than too little. This is the natural response of a rational person who faces future uncertainty and seeks to guarantee their family’s survival.

Read more: Coronavirus: how media coverage of epidemics often stokes fear and panic

The importance of emotions

Buying up large stores of supplies – which can lead to empty supermarket shelves – may seem like an irrational emotion response. But emotions are not irrational: they help us decide how to focus our attention.

Emotions allow individuals to attend to issues longer, to care about things harder and to show more resilience. They are an instinctual element of human behaviour that we often fail to include when trying to understand how people act.

Changes in individual behaviours can have large-scale implications. For example, a supermarket will normally organise its supply chain and stocks on the basis of average levels of consumption.

These systems do not handle big fluctuations in demand very well. So when demand surges – as it has in parts of China, Italy and elsewhere – the result is empty shelves.

Should I be stocking up?

In general Australians are not as well prepared for disaster as our kin across the ditch in New Zealand, who routinely have emergency kits in their homes due to the prevalence of earthquakes. However, the recent summer of fires, floods and disease should have given us all a wake-up call to be prepared.

You don’t need to rush out this very minute to buy several dozen tins of baked beans, but you might want to start assembling this kind of kit. Look through the ABC’s survival kit list, figure out what you already have and what you need to get.

Then you can make a shopping list and steadily gather the things you need. Done this way, it gives shops time to restock and won’t leave the shelves bare.

Authors: David A. Savage, Associate Professor of Behavioural Economics , Newcastle Business School, University of Newcastle

Read more https://theconversation.com/stocking-up-to-prepare-for-a-crisis-isnt-panic-buying-its-actually-a-pretty-rational-choice-132437

Interstate Car Transporter Urges Buyers to Book Early

As the conflict in the Middle East continues to put increasing pressure on local fuel supply, Australian transport companies are experiencing increasi...

Digital Minimalism for Business Owners: Fewer Tools, Better Systems

Be honest. How many apps are open right now? One for scheduling, another for invoices, a third for customer notes, plus a spreadsheet someone email...

The Importance Of Proactive NDIS Renewal Preparation For Sustaining Your Provider Business

Your NDIS renewal notice is not a signal to start preparing. By the time it arrives, preparation should already be well underway. For new providers, s...

Why Fire Extinguisher Testing in Sydney Is Becoming a Records Game, Not Only a Maintenance Job

A fire extinguisher used to feel like one of the simpler parts of building safety. It hung on the wall, wore a service tag, and sat there quietly unle...

The Switchboard Upgrade Question Every Melbourne Renovator Should Ask Before the Walls Close Up

Renovations have a funny way of making people think on surfaces first. Splashback, stone, joinery, tapware, paint. Fair enough too. That is the exciti...

Winter Sanitation Gaps in Parramatta Kitchens: A Hidden Pest Risk

Winter brings a host of changes to our homes, from the chill in the air to the cozy warmth indoors. However, this season also introduces sanitation ch...

When to Seek Advice from Employment Lawyers in Melbourne

Australian employment law is detailed and, at times, complex, with rights and obligations that aren't always obvious to employees or employers witho...

7 Benefits of Professional Gutter Cleaning for Australian Homeowners

Gutters aren't exactly glamorous. They sit up there on the edge of your roof, doing their job quietly - until they stop working. Clogged, overflowing ...

Pipe Floats Strengthening Pipeline Performance In Demanding Environments

Pipelines often travel through environments that are anything but predictable, water currents shift, terrain changes, and materials keep moving unde...

Why Ceiling Fans Are Essential For Comfort, Efficiency, And Modern Living

Creating a comfortable indoor environment is not just about temperature; it is about how air moves, how a room feels, and how efficiently energy is ...

Why Duct Cleaning In Melbourne Is A Smart Investment For Healthier Living Spaces

Behind your walls, ceilings, and vents lies a network quietly working every day to keep your home comfortable. Yet over time, this system can become...

Disability Service Providers Supporting Inclusive And Independent Living

Finding the right support system can feel like assembling a puzzle where every piece must fit just right. For individuals and families navigating di...

A Beginner's Guide to Owning a Caravan in Australia

Owning a caravan opens up a style of travel that's hard to match for freedom and flexibility. However, for those just starting out, the process of c...

Preparing Your Air Conditioner for Summer: What Most Homeowners Overlook

As temperatures rise, many homeowners switch on their air conditioning for the first time in months — only to find it’s not performing the way i...

What Actually Adds Value to Properties in Newcastle

Newcastle has seen steady growth over the past few years, with more buyers looking beyond Sydney for lifestyle, space, and long-term value. As dema...

What is Design and Build in Construction?

Imagine you’re about to start a new construction project, maybe it’s a custom home or a commercial building. You’ve got the idea, the land, an...

Commercial roof leak detection: why early action protects your building

Water ingress is one of the most disruptive and costly issues facing commercial properties. For property managers and facilities teams, even a minor...

Custom Photo Frames: Turning Everyday Moments into Lasting Displays

Photos capture moments, but how you display them determines how they’re experienced every day. A meaningful photograph deserves more than a generi...