Price Gouging

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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.

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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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