Thursday, April 13, 2006
Is there really an alternative to price gouging?
The howls from people complaining about higher petrol prices around easter are getting very annoying. If there is an increased demand prices will go up. The alternatives may always involve either queues, rationing, or high and/or highly unpredictable public finance cost. The only exception is when there is supply side collusion where there are no obvious other supply/demand constraints. Why is there not an outcry with highly fluctuating fruit/vege prices? Is anyone complaining about the extremely high profits being made by some lucky banana farmers in Mareeba?