A market run or run on the market occurs when consumers increase purchasing of a particular product because they fear a
shortage
In economics, a shortage or excess demand is a situation in which the demand for a product or service exceeds its supply in a market. It is the opposite of an excess supply ( surplus).
Definitions
In a perfect market (one that matches ...
. As a market run progresses, it generates its own momentum: as more people demand the item, the
supply line becomes unable to keep up. This causes a local shortage, which in turn encourages further hoarding.
Examples include a run on the gasoline market following
hurricane Katrina
Hurricane Katrina was a powerful, devastating and historic tropical cyclone that caused 1,392 fatalities and damages estimated at $125 billion in late August 2005, particularly in the city of New Orleans and its surrounding area. ...
in 2005, an
ammunition
Ammunition, also known as ammo, is the material fired, scattered, dropped, or detonated from any weapon or weapon system. The term includes both expendable weapons (e.g., bombs, missiles, grenades, land mines), and the component parts of oth ...
shortage following
President Obama's election in 2008, and
a run on toilet paper following a
Johnny Carson
John William Carson (October 23, 1925 – January 23, 2005) was an American television host, comedian, and writer best known as the host of NBC's ''The Tonight Show Starring Johnny Carson'' (1962–1992). Carson is a cultural phenomenon and w ...
joke on ''
The Tonight Show
''The Tonight Show'' is an American late-night talk show that has been broadcast on NBC since 1954. The program has been hosted by six comedians: Steve Allen (1954–1957), Jack Paar (1957–1962), Johnny Carson (1962–1992), Jay Leno (1992–2 ...
'' in 1973.
See also
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Bank run
A bank run or run on the bank occurs when many Client (business), clients withdraw their money from a bank, because they believe Bank failure, the bank may fail in the near future. In other words, it is when, in a fractional-reserve banking sys ...
*
Panic buying
Panic buying (alternatively hyphenated as panic-buying; also known as panic purchasing) occurs when consumers buy unusually large amounts of a product in anticipation of, or after, a disaster or perceived disaster, or in anticipation of a large p ...
References
Consumer behaviour
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