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> It is astonishing we have no such regulation for real-life items. We have something close for emergency situations. It’s illegal to price gouge during someth
by christophilus 5y ago
> It is astonishing we have no such regulation for real-life items.
We have something close for emergency situations. It’s illegal to price gouge during something like the aftermath of a hurricane.
It’s a well intentioned law. But for some things, it really may be best to let market forces dictate. For example, generators are in high demand and short supply during a hurricane. Folks snap them up so they can play Nintendo. Because they’re inexpensive due to gouging laws, they sell out fast. Now, someone who actually needs that generator for important, possibly life-saving work is SOL. And there isn’t a price incentive to expedite bringing in more supply.
Edit: I still think the scalpers are scumbags. Just wanted to point out an argument I found compelling in the past.
- WanderPanda 5y agoYou don’t need to apologise! It is sad that people don’t get this simple mechanism. I believe that lots of misery could have been averted if market signals where not distorted when they are needed most. E.g. in your example higher prices for generatora would not only prevent people from buying them for less important things but also open up a location arbitrage opportunity and incentivise to bring generators to the place where they are needed most.