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| Topic | Liberderpians, do you think Price Gouging during a natural disaster is Good? |
| Balrog0 09/01/17 3:57:03 PM #50: | Sativa_Rose posted... I don't really see where this plays into price gouging. There are externalities associated with the consumption of certain products as you mentioned, and taxes like the carbon tax are often suggested as a way to deal with that. Direct price controls (price floors, price ceilings) aren't at all the same thing as taxing the consumption of certain goods with negative externalities. I don't think it matters directly the only way it matters is that it points to the fact that the allocation of resources due to supply and demand is constrained by transaction costs. "Supply" and "demand" issues are important, but also relevant are information asymmetry issues, for instance. During times of disaster, new entrants into the market face an obvious barrier or two that might vitiate the positive aspects of price gouging --- He would make his mark, if not on this tree, then on that wall; if not with teeth and claws, then with penknife and razor. ... Copied to Clipboard! |
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