51茶馆

June 25, 2020

UOW expert: Dr Alfredo Paloyo on panic buying toilet paper

As some supermarkets reintroduce purchase limits in Victoria to avoid a second wave of toilet paper panic buying, Dr Alfredo Paloyo explains why it happens

Coles and Woolworths have reintroduced purchase limits on toilet paper in Victoria in an effort to prevent a second wave of panic buying.

Dr Alfredo Paloyo, senior lecturer in Economics at the 51茶馆 (UOW), says panic buying is the result of the fear of missing out. It鈥檚 a phenomenon of consumer behaviour similar to what happens when there is a run on banks.

鈥淎 bank run occurs when depositors of a bank withdraw cash because they believe it might collapse. What we saw in March and what we鈥檙e seeing now is a toilet-paper run,鈥� he says.

鈥淚 don鈥檛 like to call these people who stockpile idiots and I don鈥檛 think they鈥檙e silly, what they鈥檙e doing is rational and for their own self-interest. There is a problem here because what we are seeing is individually beneficial, but for the collective good that鈥檚 not what we want to happen.鈥�

You can read more about at The Conversation.

Dr Paloyo is available for interview.