korrents

price gouging

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

FilterEveryone, all time10 from 5 people
Group All Technologists 1Scientists 1Economists & investors 3Writers & journalists 1
Who Everyone JCJohn H. Cochrane 4 ATAlex Tabarrok 3 ATAdam Tooze 1 PGPaul Graham 1 SSScott Sumner 1
When All time Past 1 yearPast 3 yearsPast 5 years
  1. SS

    Scott Sumner quoted

    Monetary economist known for NGDP-level targeting

    Our readingDraconian price controls are among the most ruinous economic policies a government can impose.

    government

    Their wordsDraconian price controls are among the most ruinous of all economic policies.

    ↗Adam Smith’s greatest insight?scottsumner.substack.com 1st of 3 in this piece

  2. 5 days earlier
  3. PG

    Paul Graham quoted

    Co-founder of Y Combinator and Viaweb

    Our readingDynamic pricing means prices decrease as well as increase.

    Their wordsDynamic pricing means prices go down as well as up. So this is conclusive evidence that either (a) she's stupid, (b) she's dishonest, or (c) both.

    ↗@paulg on Xx.com

  4. 8 weeks earlier
  5. AT

    Adam Tooze quoted

    Economic historian, Kathryn and Shelby Cullom Davis…

    Our readingEurope's carmakers spent the early 2020s raising prices and profits at their customers' expense, and narrowed their own market doing it.

    Europe

    Their wordsTo put this same story another way, the European car industry in the early 2020s was a prime example of greedflation i.e. companies taking advantage of the COVID shock and other disruptions and to hike profits at the expense of consumers.

    ↗Chartbook 460 Greedflation meets China shock: Can Europe's car industry be saved without making the cost of living crisis worse?adamtooze.substack.com 3rd of 4 in this piece

  6. 5 months earlier
  7. AT

    Alex Tabarrok quoted

    Professor of economics at George Mason University and Bartley J

    Our readingCorner allocations under price ceilings are a distinct source of cross-market misallocation, separate from Harberger quantity loss and within-market misallocation.

    Their wordsThese corner allocations create a distinct source of cross-market misallocation, separate from the aggregate quantity loss (the Harberger triangle) and from within-market misallocation emphasized in prior work.

    ↗Chaos and Misallocation under Price Controls (with 2 co-authors)arxiv.org All 4 from this paper

  9. AT

    Alex Tabarrok quoted

    Our readingFeast-or-famine corner outcomes, not modest proportional belt-tightening, are the generic result of price controls.

    Their wordsThis paper shows that feast or famine, not modest belt-tightening, is the generic outcome of price controls.

    ↗Chaos and Misallocation under Price Controls (with 2 co-authors)arxiv.org All 4 from this paper

  11. AT

    Alex Tabarrok quoted

    Our readingMisallocation, not the aggregate quantity reduction, is the main welfare cost of price controls.

    Their wordsThe quantity reduction is not the main cost of price controls. The misallocation is.

    ↗Chaos and Misallocation under Price Controls (with 2 co-authors)arxiv.org All 4 from this paper

  12. 18 months earlier
  13. JC

    John H. Cochrane quoted

    Economist at the Hoover Institution

    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

  15. 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

  17. JC

    John H. Cochrane quoted

    Our readingWhen a shock falls hardest on the poor, hand out cash rather than hold the price down.

    Their wordsBut more deeply, if distributional consequences of a shock are important, then hand out cash. So long as everyone faces the same prices.

    ↗Praise for Price-Gouginggrumpy-economist.com 3rd of 4 in this piece

  19. 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.

    inflation

    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