If a scarce resource is rationed and allocated according to need, some people will misrepresent their need to get more of it. This is hardly a feature of capitalism. It's a feature of centralised resource allocation.

For example, I'm thinking of a phenomenon in the Soviet Union where people would buy a rare good not because they needed it, but because they could trade it for another shortage good they could not get.

There are tons of small anecdotes about similar abuses of resource allocation. I remember reading that Red Army officers misreported casualties to receive the pay and rations of dead soldiers.