Friday, July 5

Results of crackdown on "price gouging"

A crackdown on "price gouging":
  • encourages precautionary hoarding after disaster strikes
  • discourages consumer conservation of goods in most demand
  • discourages suppliers from acquiring precautionary inventories of goods useful after disasters
  • discourages consumers from being prepared in advance for disasters
  • lack of rising prices will not attract more resources from surrounding areas.
based on Peter McCaffrey via Knowledge Problem

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