Giberson makes his mark on Wall Street and other notes on price gouging commentary

I get a mention in the September 12, 2017, Deal Book column in the New York Times: “Price caps discourage extraordinary supply efforts that would help bring goods in high demand into the affected area,” Michael Giberson, an instructor with the Center for Energy Commerce in the Rawls College of Business at Texas Tech University, … More Giberson makes his mark on Wall Street and other notes on price gouging commentary

Worstall: Hurricane Harvey Is When We Need Price Gouging

Tim Worstall reminds us of the value of relying on prices to help get resources to where they are most useful: The economics of this is really terribly, terribly, simple. As a result of the disaster–of any disaster that is–some things are in short supply. Perhaps because some of the supply got damaged, or perhaps … More Worstall: Hurricane Harvey Is When We Need Price Gouging

Elasticity of supply reduces hotel price spikes

Major sporting events can substantially boost demand for hotel rooms and, given the difficulty of building new hotels on short notice, lead to price hikes and consumer complaints about price gouging. As I wrote four years ago, “Super Bowls usually produce price gouging complaints,” but the complaints were especially high that year given the selection … More Elasticity of supply reduces hotel price spikes

DOT’s airline price gouging investigation and a political economy-based prediction

On Friday, the U.S. Department of Transportation announced it had launched an investigation into possible “unfair practices (e.g., price gouging) affecting air travel during the period of time that Amtrak service along the Northeast Corridor was delayed or suspended as a result of the May 12th derailment.” Five airlines received letters from the agency seeking … More DOT’s airline price gouging investigation and a political economy-based prediction

You should probably raise prices a bit during emergencies

At the Master Resource blog today: “In Defense of Price ‘Gouging’ (lines and shortages are uneconomic, discriminatory).” In the essay I emphasize the unintended bias that results when consumer demand surges and supplies are tight, as for example when winter storm forecasts lead consumers to rush to the grocery store for bread and milk. Because … More You should probably raise prices a bit during emergencies