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> But it also makes the problem much worse, because when price is fixed, the sole determining factor of who gets it becomes who can get there first. Unless a r

> But it also makes the problem much worse, because when price is fixed, the sole determining factor of who gets it becomes who can get there first. Unless a rationing scheme was simultaneously instituted.

WalterBright 5y ago
The trouble with rationing is it assumes everyone has an equal need for rationed goods. Of course, this is absurd, and the result is gross mis-allocation. WW2 gas rationing is an illustrative example, as people either had more gas than they could use, and so wasted it, or were desperately short of what they needed. Inevitably, criminal gangs arose to redistribute the rationed gas, complete with drive-by shootings.
- monocasa 5y ago
  You don't think criminal gangs would arise to resell non rationed or APG items, or that violence based arbitration of access doesn't occur? Criminal gangs operate orthogonally to the law chasing profit margin. They have no qualms working in ostensibly legal markets and imposing a near monopoly through violence on it. For one example of many, see the cartels' involvement in the avocado trade.
- beerandt 5y ago
  See also: the feds recent hijacking of the covid-test market, in order to start the delivery program. The result was a month of people needing tests, but couldn't find them. While the feds prepared to mail them out 4 at a time to people who, if symptomatic, were likely to be either fully recovered by the time they arrive, or for severe cases, already under medical care. Delivery time of a week means you have to order them before you know you might need them. Being "free", there's a rational reason to order speculatively, even if you don't currently need them. And no cost to reduce momentary demand so that people who do currently need them (enough to go to the trouble to pay for them and get reimbursed by insurance) can get them, as happens with store distribution. Perfect example of a market operating efficiently, where un-needed "do-something" govt intervention creates artifical shortages, distributes irrelevant to current need, while reducing efficiency in both availability (same day vs week+) and quantity (delivered 4 at a time vs getting 1 at the store).

WalterBright 5y ago

The trouble with rationing is it assumes everyone has an equal need for rationed goods. Of course, this is absurd, and the result is gross mis-allocation. WW2 gas rationing is an illustrative example, as people either had more gas than they could use, and so wasted it, or were desperately short of what they needed. Inevitably, criminal gangs arose to redistribute the rationed gas, complete with drive-by shootings.

monocasa 5y ago
You don't think criminal gangs would arise to resell non rationed or APG items, or that violence based arbitration of access doesn't occur? Criminal gangs operate orthogonally to the law chasing profit margin. They have no qualms working in ostensibly legal markets and imposing a near monopoly through violence on it. For one example of many, see the cartels' involvement in the avocado trade.
beerandt 5y ago
See also: the feds recent hijacking of the covid-test market, in order to start the delivery program. The result was a month of people needing tests, but couldn't find them. While the feds prepared to mail them out 4 at a time to people who, if symptomatic, were likely to be either fully recovered by the time they arrive, or for severe cases, already under medical care. Delivery time of a week means you have to order them before you know you might need them. Being "free", there's a rational reason to order speculatively, even if you don't currently need them. And no cost to reduce momentary demand so that people who do currently need them (enough to go to the trouble to pay for them and get reimbursed by insurance) can get them, as happens with store distribution. Perfect example of a market operating efficiently, where un-needed "do-something" govt intervention creates artifical shortages, distributes irrelevant to current need, while reducing efficiency in both availability (same day vs week+) and quantity (delivered 4 at a time vs getting 1 at the store).