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Demonizing price gouging tells producers that there's no incentive to build up resiliency because at time when it's needed, they'll just get accused of price go

Demonizing price gouging tells producers that there's no incentive to build up resiliency because at time when it's needed, they'll just get accused of price gouging.

malfist 4y ago
Are you serious? Demonizing price gouging has nothing to do with resiliency. Corporations run things as lean as possible at all times because it's not a good gamble to keep a lot of stock of perishable items for the once every couple of decades shortage in your specific item.
- caturopath 4y ago
  On the margin, of course it's the case that being able to charge high prices incentivizes wanting to sell product. Home Depot would have a reason to stock a few more snow shovels every winter and Valero would have reason to pay a few more trucks overtime before a hurricane if they knew that they'd make their money back and then some in expected value. They might decide to or not, they might be right or wrong, but that's reality. It might not make sense even without laws limiting what you can charge for your products to stock up for such situations -- there are other ways we might want to incent things if it's worth it. Note: this is talking about price gouging situations. The egg thing is a different situation, where the accusation -- despite the headline -- is collusion, not price gouging.
mrguyorama 4y ago
Producers already refuse to build new capacity for temporary demand because if that demand slows after the temporary problem goes away, they are stuck with newly purchased hardware that they can't use without flooding the market with more product than demanded. We saw this with face masks for quite some time. It has become very obvious that "let them price gouge so it incentivizes producers to increase capacity" doesn't work.
th0ma5 4y ago
This is a false dichotomy. You can be resilient and also not price gouge. You can also do things in spite of accusations. Also blaming critics for misbehavior is classic DARVO.
- appleiigs 4y ago
  When we're talking about a bird flu, "resilient" can mean having better hygiene practices. A lot of hygiene practices include improved infrastructure, more materials (e.g., personal protective equipment (PPE) like plastic covers over boots and disinfecting pans which you step in so you're not spreading bird poo on your boots). When bird flu comes around, I keep it out. Which means I have same volume of eggs, and selling them at market prices... increased profit. Then the mob comes around complaining that I'm price gouging.
McGlockenshire 4y ago
I struggle to identify any situation in which price gouging shouldn't be demonized.
- notfed 4y ago
  I don't find it difficult. When supply is low? Why sell your last few items for less than you need to? Out of kindness and generosity to the commons?

Demonizing price gouging tells producers that there's no incentive to build up resiliency because at time when it's needed, they'll just get accused of price gouging.

malfist 4y ago

Are you serious? Demonizing price gouging has nothing to do with resiliency. Corporations run things as lean as possible at all times because it's not a good gamble to keep a lot of stock of perishable items for the once every couple of decades shortage in your specific item.

caturopath 4y ago
On the margin, of course it's the case that being able to charge high prices incentivizes wanting to sell product. Home Depot would have a reason to stock a few more snow shovels every winter and Valero would have reason to pay a few more trucks overtime before a hurricane if they knew that they'd make their money back and then some in expected value. They might decide to or not, they might be right or wrong, but that's reality. It might not make sense even without laws limiting what you can charge for your products to stock up for such situations -- there are other ways we might want to incent things if it's worth it. Note: this is talking about price gouging situations. The egg thing is a different situation, where the accusation -- despite the headline -- is collusion, not price gouging.

mrguyorama 4y ago

Producers already refuse to build new capacity for temporary demand because if that demand slows after the temporary problem goes away, they are stuck with newly purchased hardware that they can't use without flooding the market with more product than demanded. We saw this with face masks for quite some time. It has become very obvious that "let them price gouge so it incentivizes producers to increase capacity" doesn't work.

th0ma5 4y ago

This is a false dichotomy. You can be resilient and also not price gouge. You can also do things in spite of accusations. Also blaming critics for misbehavior is classic DARVO.

appleiigs 4y ago
When we're talking about a bird flu, "resilient" can mean having better hygiene practices. A lot of hygiene practices include improved infrastructure, more materials (e.g., personal protective equipment (PPE) like plastic covers over boots and disinfecting pans which you step in so you're not spreading bird poo on your boots). When bird flu comes around, I keep it out. Which means I have same volume of eggs, and selling them at market prices... increased profit. Then the mob comes around complaining that I'm price gouging.

McGlockenshire 4y ago

I struggle to identify any situation in which price gouging shouldn't be demonized.

notfed 4y ago
I don't find it difficult. When supply is low? Why sell your last few items for less than you need to? Out of kindness and generosity to the commons?