Re:Ask HN: How are you preparing for COVID-19 disruptions?
by lucasmullens on Wednesday February 26, 2020 @06:45PM
(#22428782)
How is buying food before the shortage contributing to the panic stocking problem?
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Re:Ask HN: How are you preparing for COVID-19 disruptions?
by brokensegue on Wednesday February 26, 2020 @07:12PM
(#22428970)
The same way withdrawing from a bank you expect to have a bank run soon does? This is what causes bank runs.
Re:Ask HN: How are you preparing for COVID-19 disruptions?
by paulgb on Wednesday February 26, 2020 @08:00PM
(#22429311)
The difference is, a bank only has a certain amount of money, while a grocery store can turn over inventory on a daily or weekly basis. So if I stock up now before everyone else does, I can actually make less of an impact if and when there is an eventual need for everyone to prepare to stay home for a week.
Re:Ask HN: How are you preparing for COVID-19 disruptions?
by brokensegue on Wednesday February 26, 2020 @09:36PM
(#22429843)
Functionally the grocer has a limited supply also because there is only so much production/shipment capacity. I agree if you do it early enough your impact is minimal.
But if you withdraw early enough from a bank then the bank can in theory safely exit from its positions and become more liquid
Re:Ask HN: How are you preparing for COVID-19 disruptions?
by anfilt on Wednesday February 26, 2020 @07:31PM
(#22429113)
However, the problem is if you don't try to get stuff before or during the panic you get screwed yourself. Its why its a dangerous feedback loop. If you don't join in you lose/ get negatively effected by it.
Its kinda of a prisoners dilemma but at a larger scale.