3min chapter

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"Price gouging" in emergencies

Rationally Speaking Podcast

CHAPTER

Is It a Form of Rationing?

People will figure out ways a of avoiding it. We had lots of rationing during world war too. It depends how long it's done. If it's done for a short period, it may work. If it goes on for a long time, then people willfigure out ways a to avoid it. As long as there's some shortage, it'll still be some people get it rather than others. And it, i people will find ways of mislabelling it. So a short term price control with rationing will work better in the short run,. Then it will if we think we'll do it for a long period.

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