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A Model of Panic Buying and Workforce under COVID-19

Author

Listed:
  • Guohua He

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Zirun Hu

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

Abstract

Allowing there to be an undersupply of medical resources and infection amid the social workforce, this paper proposes a theory to show how panic buying is induced and how bad the workforce status could be. By developing a novel general equilibrium model, we find that for any retail price that is higher than the buyer’s reserve value, the buying competition will be induced and the medical resources supply will further be tightened. Moreover, if the transmission rate of COVID-19 surpasses the theoretical threshold that is proposed by this paper, the whole workforce in our simulated economy will inevitably be infected.

Suggested Citation

  • Guohua He & Zirun Hu, 2022. "A Model of Panic Buying and Workforce under COVID-19," IJERPH, MDPI, vol. 19(24), pages 1-14, December.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:24:p:16891-:d:1005031
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    References listed on IDEAS

    as
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    1. Xunqing Wang & Nan Zhang & Hang Zhou & Xinpeng Huang & Rundong Luo, 2023. "Multi-Agent Evolutionary Game Analysis of Group Panic Buying in China during the COVID-19 Pandemic," Mathematics, MDPI, vol. 11(13), pages 1-24, July.

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