Price gouging: Can economics justify a price cap?

Michael Giberson Jeff Ely, Cheap Talk, blogged “Price Gouging“ Tyler Cowen, Marginal Revolution, responded with “Price gouging and the elasticity of supply“ David Henderson, EconLog, “Jeff Ely on Price Controls During Disasters“ Matt Zwolinski, Bleeding Heart Libertarians, “Price Gouging Roundup“ Sandeep Baliga, Cheap Talk, adds, “Why is there no price gouging in NYC?“ Baliga linked to … More Price gouging: Can economics justify a price cap?

Power demand dropping? Must be time to raise prices!

Michael Giberson News headline reflects the stark difference in pricing strategy between competing businesses and regulated monopolies: “Xcel: Slack demand signals need for rate hike.” The sub-headline reads, “The utility, which posted a profit increase, will ask Minnesota for approval to raise rates.” Profits are up? Must need to raise prices. Reading the article heightens the … More Power demand dropping? Must be time to raise prices!

Fossil energy subsidies and renewable energy competitiveness

Michael Giberson Some, not all, of you believe that fossil fuel energy gain massive and undeserved subsidies from the federal government, that such subsidies way outweigh subsidies for renewable energy, and that subsidies for fossil fuels undermine the market success of renewable energy. You may want to read Severin Borenstein’s post, “Are Fossil Fuel Subsidies … More Fossil energy subsidies and renewable energy competitiveness

So much oil that we don’t need infrastructure to develop it?

Michael Giberson At InsideClimate News Elizabeth Douglass has a long, sprawling article tying together projections of U.S. oil production growth sufficient to turn the U.S. into an oil exporting nation and the political opposition to the Keystone XL pipeline. But the link between resource optimism and infrastructure obstructionism is a bit of a non sequitur. … More So much oil that we don’t need infrastructure to develop it?

An economic analysis of governance in cycling

Over the past week professional cycling has been thrown topsy-turvy by the fallout from the US Anti-Doping Agency’s report on their investigation into performance-enhancing drug (PED) use in the U.S. Postal Service team, 1998-2006. The focus of the dossier is, of course, Lance Armstrong, and the eyewitness testimony is extensive and not very surprising to … More An economic analysis of governance in cycling

“Please, sirs, may I have some more … subsidies for wind power?”

Michael Giberson From The Hill’s Energy & Environment Blog: A group of military veterans pressed congressional Republicans on Thursday to renew a tax credit for the wind industry that their party’s standard-bearer, Mitt Romney, has vowed to end. The veterans, who are all employed by the wind industry, secured meetings with staff for House Majority Leader … More “Please, sirs, may I have some more … subsidies for wind power?”

Matching, markets, and morality

Michael Giberson The recent Economics Nobel announcement, which went to Lloyd Shapely and Alvin Roth for theoretical and practical innovations in matching processes, has prompted some misguided carping among market-oriented commentators. The Andrew Coulson post from Cato-at-Liberty (which Lynne quoted favorably yesterday) is one example. Robert Wenzel is another (calling it a prize for “work … More Matching, markets, and morality