I’m pretty sure this isn’t an original idea, but I can’t really remember where I saw it first. But the idea basically goes like this.
In natural disasters certain things are either hoarded by consumers or companies price gouge consumers to take advantage of the unique situation. So if there. Is a law saying 24 packs of water MUST stay at their previous price people will hoard it, possibly preventing other people from from acquiring an essential good, if there is no law retailers could charge $100 per bottle and take advantage of the fact that people need it to live. So why not find a happy medium? A system where the price increases based on much they purchase.
1st 24pk of water per person, so a family of 5 could buy 5 packs at this price (or tank of gas whatever really) – $5
2nd $20
3rd $100
Etc, etc
Does this not solve the issue of both hoarding and price gouging in unique emergencies?
Solving the the problem of hoarding and price gouging during disasters and emergencies?
byu/Liesmyteachertoldme inAskEconomics
Posted by Liesmyteachertoldme
1 Comment
This kind of rationing requires a lot of recordkeeping that’s hard to do during a disaster.