korrents

price gouging

Whether a price should be allowed to spike in a shortage, and what happens to supply when it is not.

What people on korrents have said about price gouging, newest first — 3 positions from 1 person.

  1. JC

    John H. Cochrane quoted

    Our readingPrice gouging should be legal, because a sharply higher price is what sends scarce supply to the people who need it most.

    Their wordsPrice gouging is wonderful for all the reasons that letting supply equals demand is wonderful. When there is a limited supply, then a sharply higher price directs that supply to those who really need it.

    ↗Praise for Price-Gouginggrumpy-economist.com 1st of 4 in this piece

    Interesting
  3. JC

    John H. Cochrane quoted

    Our readingLaws against price gouging are what cause hoarding, because it is the expectation of empty shelves that makes people stock up.

    Their wordsHoarding goes with price controls, anticipated empty shelves.

    ↗Praise for Price-Gouginggrumpy-economist.com 2nd of 4 in this piece

    Interesting
  5. JC

    John H. Cochrane quoted

    Our readingHanding out cheques during Covid and accepting the inflation was less damaging than price controls and rationing would have been.

    Their wordsWe got inflation, but we did not get the devastation that would have been caused by price controls and rationing.

    ↗Praise for Price-Gouginggrumpy-economist.com 4th of 4 in this piece

    inflation

    Interesting