This is not the first time they reopen them with China, but the standard has changed. In 2018, the Trump administration raised tariffs on steel, aluminum and various products – but the impact on prices was slow to reach the shelves. Now, with one and, consumers and shopkeepers are anticipating. Wedding dresses, cat feed and perfumes have become strategic items. The choice may seem random, but it is moved more by emotion than for price.
Research in behavioral economy helps to understand this pattern. D’Acunto, Malmendier and employees investigated as consumers form expectations of. In practice, people react less to the official inflation index e. Using supermarket scanning data and expectations questionnaires, the authors identified that increases in frequent purchase products – as milk or soap powder – generate disproportionate impacts on inflation expectations as a whole. The perception that “everything is more expensive” is born of concrete and visible experiences, even if they do not reflect the aggregate data. This subjective expectation, in turn, influences consumption in categories that, in theory, were not affected, such as furniture or electronic.
In the face of perceived risks as high – as pandemics or – consumer behavior tends to be mediated by anxiety. Syed Alam and employees deepen the emotional dimension of the consumer response. Variables such as uncertainty, perception of severity and risk of scarcity raise anxiety, which in turn increases the propensity of impulsive purchases. In such cases, consuming becomes a form of control amid chaos. Buying three vials of perfume or securing the wedding dress before high price is not irrational: it’s self -protection.
There is still a relevant social component. When a consumer sees other people by stocking products or discussing an imminent increase, this observation serves as a behavioral trigger. Michelle Baddeley gathered interdisciplinary evidence about the role of herd behavior in perceived scarcity contexts. It becomes guided by a collective logic, not just individual. This informational waterfall is fueled by rumors, images of empty shelves and social interactions. Unlike real scarcity, perceived scarcity is volatile – but highly effective in shaping behaviors.
Bachmann, Berg and Sims investigated heterogeneity in consumer response to inflationary expectations. In many cases, this expectation does not lead to more consumption, but to retraction. This is particularly relevant to durable goods, where the high value and low urgency generate prudence.
The American episode reveals a broader standard: consumer decisions follow more complex logic than traditional economic theory often predicts. The price matters, but it doesn’t act alone. Emotions such as anxiety, social factors such as herd behavior, and structural uncertainty shape what, when and why you buy. After all, anxiety also moves demand – and it can be as powerful as the price in the gondola.
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