When is it price gouging, and when is it just a free market? (Page 1/1)
2.5 FEB 26, 10:56 AM
Yes it is annoying that prices go up when demand does, or when supply dwindles, but there is a line between gouging and fair market somewhere.

I just thought this guy brought up a good point.



I suppose the hinge pin is why demand or supply goes up, and if there is funny business involved.

P.S.
For fun, count how many euphemisms for TP he uses, lol

[This message has been edited by 2.5 (edited 02-26-2021).]

williegoat FEB 26, 11:13 AM
Of course price gouging does exist, and sometimes it can be immoral, such as overcharging for food and water during a disaster.

The question is: Should the government intervene?

I am a small government, free market kind of guy. No crisis lasts forever and the consumer should remember who helped and who took advantage, after things settle down.
Jake_Dragon FEB 26, 12:25 PM
Example if there is a storm and a shortage of water, I would consider it price gouging if you raised the price when you have a stock.
Now if you have to go out an replace your stock and that cost more then I wouldn't expect the price to stay the same.
I have been in storms where fresh water was an issue and watched water prices triple over night.
That is is gouging.
2.5 FEB 26, 12:29 PM

quote
Originally posted by Jake_Dragon:

Example if there is a storm and a shortage of water, I would consider it price gouging if you raised the price when you have a stock.
Now if you have to go out an replace your stock and that cost more then I wouldn't expect the price to stay the same.
I have been in storms where fresh water was an issue and watched water prices triple over night.
That is is gouging.



I think that is a good analysis.
maryjane FEB 26, 01:38 PM
Often, or maybe sometimes, the stock replacement costs comes in to play for the retailer.
I know it's true in the cost of retail fuels. The wholesaler notifies the retailer on a daily basis what it will cost to replace the fuel the retailer sold that day.
That comes from the rack price the wholesaler buys it with.
It's been that way for decades.
Hudini FEB 26, 06:33 PM

quote
Originally posted by williegoat:

Of course price gouging does exist, and sometimes it can be immoral, such as overcharging for food and water during a disaster.

The question is: Should the government intervene?

I am a small government, free market kind of guy. No crisis lasts forever and the consumer should remember who helped and who took advantage, after things settle down.



I would argue that in a free market price gouging does not exist. However, government monopolies do exist and they are not part of the free market. Stuff like power and water companies are regulated monopolies and their prices cannot be allowed to expand exponentially. If you want monopoly power you must accept regulation.

You could also argue that stuff like bottled water and gasoline/diesel also falls under the regulated monopolies. Ammo tho? Just don't buy it.
blackrams FEB 26, 07:12 PM
Retailers will used any excuse to raise prices, the only things that keeps them under control is competition.

Shop around, get the biggest bang for yer buck.

Rams