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