Emergency-Dependent Supply Decisions with Risk Perception and Price Control

Table 1

Consumers’ utility in the stable market.

Consumers’ choice	Purchase	Leave
Probability of need (𝜃)	𝑟−𝑝	𝑝−𝑟
Probability of no need (1−𝜃)	−𝑝	0
Consumers’ utility	𝜃(𝑟−𝑝)−(1−𝜃)𝑝	𝜃(𝑝−𝑟)