3 ms·

I think he's referring to the feedback loop that hoarding causes. If you're confident you'll be able to buy the good in the future, you'll buy less now. If a h

I think he's referring to the feedback loop that hoarding causes. If you're confident you'll be able to buy the good in the future, you'll buy less now. If a hoarder clears out the supermarket, that means that everyone that shops at that supermarket and doesn't get what they want is more liable to make a larger purchase when do find it at another store. This chain reaction leads to shortages. It's impossible to prove the direct amount of causation (and of course organic demand spiked), but the relationship is clearly there.

chrischen 6y ago
I think he's specifically referring to the hoarders being the cause of the price increase in the first place and profiting off of their hoarding (correct me if I'm wrong). But that's definitely not the case with most shortages of things like PPE and alcohol. Most people are calling any price increase gouging, to the point where sites like eBay have simply banned anyone from selling masks at marked up prices. However they grandfathered some pre-existing sellers. Ironically this created a monopoly situation that has constrained supply which by definition means ebay is price gouging (since they make a percentage based fee on sales). If they simply let new sellers "price gouge", it would flood the supply and naturally lower prices for things like masks on eBay.
javagram 6y ago
Sure, but people also just used up what they had. I had a box of mini hand sanitizer in the closet i purchased 2-3 years ago, I brought it out at the beginning of march and began to use it. I ran out and there was no more to be found in any store. Still have only seen it once or twice in a store, behind the counter now 2 months later. Even if we had all just tried to buy 1 bottle of hand sanitizer each that would have been 330 million bottles, I don’t think store shelves had that many in march. (Edit: It’s the same thing as happened to stuff like toilet paper - we usually make just enough toilet paper for everyone, between commercial and retail toilet paper sales. Suddenly commercial toilet paper became unsaleable with industries shuttering their doors, and the existing supply of home toilet paper wasn’t enough anymore since now all the bum-wiping that would have been done with commercial toilet paper needed to be done with the different rolls that are sold to home goods buyers)

chrischen 6y ago

I think he's specifically referring to the hoarders being the cause of the price increase in the first place and profiting off of their hoarding (correct me if I'm wrong). But that's definitely not the case with most shortages of things like PPE and alcohol. Most people are calling any price increase gouging, to the point where sites like eBay have simply banned anyone from selling masks at marked up prices. However they grandfathered some pre-existing sellers. Ironically this created a monopoly situation that has constrained supply which by definition means ebay is price gouging (since they make a percentage based fee on sales). If they simply let new sellers "price gouge", it would flood the supply and naturally lower prices for things like masks on eBay.

javagram 6y ago

Sure, but people also just used up what they had. I had a box of mini hand sanitizer in the closet i purchased 2-3 years ago, I brought it out at the beginning of march and began to use it. I ran out and there was no more to be found in any store. Still have only seen it once or twice in a store, behind the counter now 2 months later. Even if we had all just tried to buy 1 bottle of hand sanitizer each that would have been 330 million bottles, I don’t think store shelves had that many in march. (Edit: It’s the same thing as happened to stuff like toilet paper - we usually make just enough toilet paper for everyone, between commercial and retail toilet paper sales. Suddenly commercial toilet paper became unsaleable with industries shuttering their doors, and the existing supply of home toilet paper wasn’t enough anymore since now all the bum-wiping that would have been done with commercial toilet paper needed to be done with the different rolls that are sold to home goods buyers)