Price Gouging during disasters is strongly defended by libertarians and others using bad Economics 101 arguments that presume only money matters and ignore market failures. Price Gouging occurs during non-equilibrium situations and does not support the justifications made for markets in the first place.
- Rationing (1 link)
- Rationing is a non-market solution for shortages which emphasizes fairness, as opposed to Price Gouging which burdens the poor. In wars and disasters, temporary rationing is an important tool.
- Anti-price gouging laws can increase economic welfare [More...]
- "An article by Robert Fleck of Clemson, forthcoming in the International Review of Law and Economics, presented a theoretical case that price gouging restrictions can be value-enhancing under certain conditions."
- Price Gouging Has Its Defenders, But They Ignore Morality [More...]
- "The moral condemnation of price gouging is a recognition that in certain social situations, raising prices is kicking vulnerable people when they are down. Our reaction to price gouging is not some silly knee-jerk rejection from people who don’t know enough about economics, as it is sometimes portrayed. It is, rather, deeply reflective of the societal need for mechanisms other than markets."
- What's the Matter with Price Gouging? [More...]
- "I argue that gouging takes the form of a specific failure of respect for persons by undercutting equitable access to essential goods." This undermines the very purposes of markets.
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