3 ms·
> These types of situations are textbook explanations for WAR PROFITEERING (except we are in a crisis instead of war). Meh. I don't think it is the same thing
by gwright 7y ago
> These types of situations are textbook explanations for WAR PROFITEERING (except we are in a crisis instead of war).
Meh. I don't think it is the same thing at all. There is no shortage of raw materials or of labor (as in war time).
There is an increased demand (irrational or rational doesn't matter). Best way to decrease demand is to let prices rise. It isn't really any simpler than that.
If politeness or customs or laws prevent the price from rising while demand continues to rise then the outcome is 100% expected: shortages where the product isn't available for any price.
It is our own mis-placed disdain for surge pricing that is creating the shortages.
- stbtrax 7y agoSurge pricing in itself affects people differently across income levels. If the end goal is to have availability to sanitation supplies across the population to prevent the spread, then surge pricing is not the answer.
- gwright 7y ago> If the end goal is to have availability to sanitation supplies across the population to prevent the spread, then surge pricing is not the answer. That is just an assertion with no justification that goes against all standard economic theory.