COVID-19 Pandemic Crisis Impact on the Behavior of Firms and Consumers
Keywords:
кризис коронавируса, behavioral economics, firm behavior, consumer, business, coronavirus crisisAbstract
The coronavirus pandemic crisis, which has caused emotional, psychological, social and economic upheaval, can already be called the “Black Swan”, which heralded the beginning of a “new normal” characterized by a high degree of uncertainty. The main purpose of the study is to analyze the impact of the COVID-19 crisis on the behavior of firms and consumers: it is important to measure not only the quantitative damage, but also the psychological (behavioral) consequences of the pandemic. The restrictions affected all economic agents equally: global supply chains were interrupted, quarantine measures for social distancing and remote work were introduced, and decisions wer at the state level to close borders and diversify production for healthcare needs. As a result of the analysis, it was concluded that the main trend, both in the behavior of firms and consumers, was the manifestation of altruistic behavior: the global lockdown forced people to reconsider their habits in favor of conscious consumption, and organizations to adhere to socially responsible behavior. The results of the study also indicate that, on the one hand, as a result of the coronavirus spread, the share of employees working remotelywill structurally increase, and on the other hand, the process of introducing labor-saving technological changes will accelerate, and firms will replace labor with capital, because capital cannot be infected with a virus, at least directly. As for consumers, their reaction in response to restrictions arising during quarantine seems irrational, but it was concluded that in the framework of the crisis, excessive thriftiness and panic buying is a well-founded consumer decision in an environment of high uncertainty. The first part of the work shows the structure of the COVID-19 crisis, its differences from the crises of the past and the changes that it entailed at the macroeconomic level, then the main features of the functioning of firms during the pandemic and new behavioral patterns of consumer behavior are considered, in the conclusion inferences are drawn and recommendations are given for further research.
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