When emotions drive the market: Behavioral and economic determinants of panic selling among poultry farmers
DOI:
https://doi.org/10.61511/jane.v3i2.2026.2867Keywords:
behavioral economics, broiler farmers, entrepreneurial decision-making, psychological buffer, sustainability outcomesAbstract
Background: Market volatility and emotional stress strongly influence agricultural decisions. Among Indonesia’s small-scale broiler farmers, these pressures often trigger panic selling, an impulsive behavior that disrupts price stability and sustainability. Empirical studies on panic selling from a behavioral economics perspective remain limited. This study examines behavioral and economic determinants of panic selling and the mediating role of emotional stress linking production factors, market pressures, and sustainability orientation. Methods: Data were collected from 100 broiler farmers in East Java via structured questionnaires. A PLS-SEM model with 5 constructs: internal production factors, external market pressures, emotional stress, panic selling, and sustainability orientation. The model was analyzed using reliability, validity, and bootstrapped path tests. Findings: Internal production quality (feed efficiency, chick quality, flock health, management) reduces emotional stress (β = –0.324, p < 0.001) and panic selling (β = –0.285, p < 0.001), while external market pressures (feed cost, trader dependence, market volatility, information access) increase stress (β = 0.222, p < 0.01) and panic selling (β = 0.192, p < 0.01). Emotional stress strongly mediates panic selling (β = 0.417, p < 0.001). Panic selling negatively affects sustainability orientation (β = –0.443, p < 0.001), whereas internal factors enhance it (β = 0.390, p < 0.001). The indirect effect of internal factors via stress is also significant (β = –0.135, p < 0.05). Conclusion: panic selling results from the interaction of stress and market instability, leading to short-term decisions that undermine long-term sustainability. Strengthening technical capacity, market transparency, and access to reliable information can mitigate stress, prevent panic selling, and support sustainable poultry farming. Novelty/Originality of this article: This study offers one of the first empirical insights into poultry panic selling through a behavioral economics lens, linking emotional decisions with sustainability outcomes.
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