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I know it was 4 hours ago but did you forget that we're talking about "price gouging" during disasters or some other event that disrupts normal supply lines?
by freshhawk 14y ago
I know it was 4 hours ago but did you forget that we're talking about "price gouging" during disasters or some other event that disrupts normal supply lines?
- gwright 14y agoWhat are you talking about? Disrupted supply lines mean higher cost to deliver materials (longer routes, special equipment, etc). Higher prices encourages suppliers to expend the extra $$$ to deliver the goods. Or even new suppliers to enter the market (for example think about construction workers or tree removal companies in the wake of a large storm traveling to where the work is). If the price can't change (legally) then suppliers will simply ignore the problem until conditions return to 'normal' thus ensuring shortages.
- freshhawk 14y agoYou: Really? There is no historical record of the market responding to increased prices? Me: we're talking about "price gouging" during disasters or some other event that disrupts normal supply lines Seems pretty clear what I was talking about. Your hypothesis about price gouging during emergencies doesn't have historical evidence. I understand perfectly why you think it should work that way according to your ideology. I was pointing out that, in these circumstances, it doesn't match up with the data. Plenty of other commenters, with knowledge of inventory logistics, have explained why.