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On the other hand, not allowing very high prices for fuel in the aftermath of a hurricane is a good way to make sure nobody ever stockpiles fuel especially to b
by whatshisface 4y ago
On the other hand, not allowing very high prices for fuel in the aftermath of a hurricane is a good way to make sure nobody ever stockpiles fuel especially to be available after a hurricane.
- Spivak 4y agoYou're like 99% of the way there. This is the behavior you want. The alternative is panic shortages from people afraid prices are about to skyrocket.
- gruez 4y ago>You're like 99% of the way there. This is the behavior you want. The alternative is panic shortages from people afraid prices are about to skyrocket. Forcing prices to be low has the opposite problem: since the cost of stocking up is low, everybody does so. If you're at the grocery store and there's a hurricane approaching, why wouldn't you stock up on some non-perishable foods? After all, worst case scenario you pay a bit more than you would have (assuming you only buy stuff on sale), and you can consume them over time, so the net cost to you is very low. Of course, if every shopper stocks up for 2 weeks worth of perishables, the shelves will be empty within an hour.