Price Gouging or Price Information?
The Answer Is Transaction Costs
Price Controls Hinder Resilience
High prices during emergencies incentivize stockpiling of essential goods, which is discouraged by anti-price gouging laws. These laws prevent sellers from benefiting from increased demand, leading to potential wasted stock if situations change, such as a hurricane altering its course. Additionally, by keeping prices low despite shortages, these laws dissuade suppliers from reallocating resources to areas of greater need, ultimately undermining the ability to secure necessary supplies during crises. Thus, anti-price gouging laws diminish both stockpiling efforts and the flow of new supplies to affected regions.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
