How to reduce the game theory of panic-buying

How to reduce the game theory of panic-buying

As we face difficult times, we hope that everyone will draw closer and help one another in a bid to cushion from the harsh reality. Unfortunately, this is not the case, as it is evident in this COVID-19 pandemic.

As of writing, toilet papers are attracting exorbitant prices of eBay while fights in supermarkets are a norm. A man in Tennessee bought more than 17,000 sanitizers in a bid to sell them for a profit. In the UK, shelves in supermarkets are empty while long online queues are the norm of the day as people purchase groceries.

But we are also witnessing the best out of people as healthcare practitioners offer services overtime and people giving the elderly and most vulnerable uninterrupted space to do shopping.

The two approaches to this crisis can be summed up using game theory. In essence, it is not only what we do but also what others do. For example, getting the right groceries is dependent on our shopping behavior and other shoppers.

Experts say that our behavior selfish behavior is motivated by greed and fear. Greed comes in when the greedy are less concerned about others while fear pushes people to think that while they shop sparingly, other shoppers will not. As such, they go about hoarding.

So how can we stop hoarding? Researchers suggest emphasizing kinship between shoppers. This would cause them to put themselves in the shoes of the other person, and in so doing increase cooperation.

The other possible way is to down-play that other shoppers are panic-buying. Newspapers can avoid publishing empty shelves.

Source: http://theconversation.com/the-game-theory-of-panic-buying-and-how-to-reduce-it-134107