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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 varia

• 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.