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>> There is a much more effective way to prevent people from buying more than they need... limit sales to x items per buyer, or rationing. The only thing rising
by ardy42 7y ago
>> There is a much more effective way to prevent people from buying more than they need... limit sales to x items per buyer, or rationing. The only thing rising costs ensure is that people without money don't get anything.
> It's not so simple. What do you say to the family with seven kids who also has grandma and grandpa living at home? Do they get only one bottle of sanitizer the same as the college student?
It is that simple. People who legitimately need the item have the time to come back later for more, but price gougers don't have that time and need to clean the store's inventory efficiently in a short time.
- baryphonic 7y agoIf it is that simple, then someone should be able to simply answer the scenario I presented and why non-price rationing with fixed prices is preferable to variable price.
- ardy42 7y ago> If it is that simple, then someone should be able to simply answer the scenario I presented and why non-price rationing with fixed prices is preferable to variable price. Because variable prices simply ration to the people with more money, which isn't always the best rationing scheme. For instance, for hand sanitizer to do the most good, you want it widely distributed, even to people with little money. Non-price rationing does that decently well in a crisis. The fixed prices keeps the resource affordable, while the rationing discourages hoarding (either due to fear or profiteering schemes). Variable pricing encourages hoarding, as fearful but wealthy are allowed hoard they reasonable need and "entrepreneurs" hoard to flip the resource to the first group at surge prices.