Quote:
Originally Posted by Didace
If there's a bottled water shortage in Florida after Irma goes through one sure way to alleviate it is to sell it for $100/ 16oz bottle. I predict lots of bottled water shipped to Fla. if that happens.
Pretty much this. Price gouging after a hurricane or some other natural disaster actually serves two very useful social functions.
1.) If you ABSOLUTELY NEED something, price gouging makes it much more likely that there will be some available for you.
2.) By temporarily raising prices to reflect the true state of demand, it provides a strong price incentive for more supply to come to market.
I guess my position is I'm in favor of "compassionate price gouging" (lol) - basically, price gouging is OK as long as the price gougers can recognize when somebody really needs something and doesn't have the money, and will make an exception for them.
For example, if somebody is selling ice for a huge markup and an old person needs it to keep medication that is supposed to be kept in the refrigerator from going bad, or something like that.