Panic buying in Singapore during the Covid pandemic
Singapore is an incredibly well ordered country. The population obediently follows laws and places their trust in the government, which is very popular. When the covid pandemic struck, however, there was immense panic. Grocery stores had 3 hour queues and essential supplies like covid tests and masks were sold out.
This occurred due to an information cascade. This is where people disregard their own signals and copy the behavior of others because they expect it to be beneficial. In this case, People observed others panic buying (purchasing excessive quantities of groceries) and decided to imitate that behavior. This happened for two key reasons. First, people expected a direct benefit by panic buying because when people saw essential supplies selling out, they were prompted to stockpile them to ensure they had enough. Second, when people saw others buying in bulk, they thought that others might know something about covid which indicates that essential supplies will run out, prompting them to buy. Both of these effects lead to people ignoring their own signals and copying the behavior of others.
The panic buying crowd in Singapore was likely more focused on the direct benefit created by panic buying. According to research, 63% of panic buyers rated price the most important factor when making purchases. Hence they made their bulk purchases in order to ensure they wouldn’t have to pay high prices later.
More research by the article revealed that panic buyers were likely to be from homes with infants or elderly, who require specialised supplies like milk powder and diapers. Hence, a lot of panic buying was to protect more vulnerable members from shortage.
Panic buyers were criticized wildly and shamed over the internet. It is important to keep in mind that in times of crisis, people may act irrationally and mimic the behavior of others. In these situations, we must be sympathetic to their reasons and avoid being hateful towards them.