Emergency-Dependent Supply Decisions with Risk Perception and Price Control

Table 2

Consumers’ utility when the market is shocked by emergencies.

Consumers’ choice	Purchase	Leave
Probability of need (𝑓)	𝑟−𝑝	𝑘1(1−𝑖)+1(𝑝−𝑟)
Probability of no need (1−𝑓)	−(𝑘2𝑖+1)𝑝	0
Consumers’ utility	𝑓(𝑟−𝑝)−(1−𝑓)(𝑘2𝑖+1)𝑝	𝑓(𝑝−𝑟)𝑘1(1−𝑖)+1