Economics: The Value of "Price Gouging"

[Hanarchy Montanarchy]

Oh? "the assumption of the rational consumer making informed decisions in a free market economy don't hold up at all well in a disaster area" based on what? Citation forthcoming?

You are right, desperate people in desperate situations are well known for their rational choices.
/shrug

I am? You are the one who proposed a crafty investor of 10k for a case of water with the intent of selling it to the second in line for double.

Could it not be equally as viable that that desperate people will take care of their immediate needs and then use that relief to plan for a more prudent long term plan? /shrug indeed

The initial assumption that, at a high enough price, more resources will get to more people because the first people in line will be able to rationally decide how much they need, and won't waste their money buying more than that, is what I was talking about.

The inflation problem is something else entirely.

[Hanarchy Montanarchy]

So you agree with the OP? There will be a market equilibrium that will expose itself as more and more resources avail themselves?

Eventually...

The short term problems caused by the disaster is what we are talking about. As more and more resources avail themselves, obviously gouging isn't really an issue you nit.

Is it really gouging though? That is the question you have yet to address, shitdick. (since we are hurling insults now I might as well use my favorite)

Is what really gouging? Taking advantage of a temporary lack of resources in order to make a short term profit on peoples' desperation without adding any value through providing a service?
Yes, that is really gouging. Again, the initial price charged by the people bringing in the resource isn't the problem.

[Haumana]

The initial assumption that, at a high enough price, more resources will get to more people because the first people in line will be able to rationally decide how much they need, and won't waste their money buying more than that, is what I was talking about.

The inflation problem is something else entirely.

Agreed. But you seem to be saying that the average person will waste their resources on buying more than they will need because they are in irrational state of mind.

But initially you threw in with some savvy investor type who did the cold calculation of buying all available only to double his money on the next in line. Is that now out the window?

[Haumana]

Eventually...

The short term problems caused by the disaster is what we are talking about. As more and more resources avail themselves, obviously gouging isn't really an issue you nit.

Is it really gouging though? That is the question you have yet to address, shitdick. (since we are hurling insults now I might as well use my favorite)

Is what really gouging? Taking advantage of a temporary lack of resources in order to make a short term profit on peoples' desperation without adding any value through providing a service?
Yes, that is really gouging. Again, the initial price charged by the people bringing in the resource isn't the problem.

Who said they didn't add any value? What service? We are talking about delivering a resource to the maximum amount of people. Spreading the wealth which almost sounds like socialism but it comes with a cost.

[Hanarchy Montanarchy]

The initial assumption that, at a high enough price, more resources will get to more people because the first people in line will be able to rationally decide how much they need, and won't waste their money buying more than that, is what I was talking about.

The inflation problem is something else entirely.

Agreed. But you seem to be saying that the average person will waste their resources on buying more than they will need because they are in irrational state of mind.

But initially you threw in with some savvy investor type who did the cold calculation of buying all available only to double his money on the next in line. Is that now out the window?

I should think that any normal population in a disaster area would have both average people and extraordinarily savvy and cynical calculators.

More importantly, the very ability to make an informed decision about what you might need is upset in a disaster, no matter how rational the individual is.

Some people may be panicking and trying to hoard more water than they need. Some people may be reasonably devaluing currency and prioritizing water. Some people may be hoping regular service isn't restored so they can take advantage of the temporary water bubble.

[Hanarchy Montanarchy]

Is it really gouging though? That is the question you have yet to address, shitdick. (since we are hurling insults now I might as well use my favorite)

Is what really gouging? Taking advantage of a temporary lack of resources in order to make a short term profit on peoples' desperation without adding any value through providing a service?
Yes, that is really gouging. Again, the initial price charged by the people bringing in the resource isn't the problem.

Who said they didn't add any value? What service? We are talking about delivering a resource to the maximum amount of people. Spreading the wealth which almost sounds like socialism but it comes with a cost.

I can't tell if you are being insufferably dense to troll me, or if you really don't understand the basic concepts being discussed.
Either way, carry on.

[Haumana]

[quote="Hanarchy Montanarchy"
I should think that any normal population in a disaster area would have both average people and extraordinarily savvy and cynical calculators.

More importantly, the very ability to make an informed decision about what you might need is upset in a disaster, no matter how rational the individual is.

Some people may be panicking and trying to hoard more water than they need. Some people may be reasonably devaluing currency and prioritizing water. Some people may be hoping regular service isn't restored so they can take advantage of the temporary water bubble.[/quote]

So we are talking about who is first in line and your imaginings? Would the extraordinarily savvy tend to make it first in line? Hope and change?

Who is going to risk everything they have in a crisis to bet on the come? Most likely a scant few. Who is going to take only what they need for the time being to afford themselves a cushion to devise a better long term plan? More than you are giving credit, imo.

[Haumana]

Is what really gouging? Taking advantage of a temporary lack of resources in order to make a short term profit on peoples' desperation without adding any value through providing a service?
Yes, that is really gouging. Again, the initial price charged by the people bringing in the resource isn't the problem.

Who said they didn't add any value? What service? We are talking about delivering a resource to the maximum amount of people. Spreading the wealth which almost sounds like socialism but it comes with a cost.

I can't tell if you are being insufferably dense to troll me, or if you really don't understand the basic concepts being discussed.
Either way, carry on.

Ditto. You are the one who proposed the scenario of the first person dropping 10gs to buy all the water only to sell it to the 2nd in line for just shy of 20gs. Now you are on to some other bullshit. Just stamp your foot and say "Nu uh" already. It would be more becoming.

[Martin Hash]

Price gougers always rely on State Violence to protect them, as if other people are stepping stones on their way to The American Dream. One of the things the 2nd Amendment does is cure them of this misunderstanding. My advice to all you Price Gougers, you better sell your high-priced insulin well-armed.

[Fife]

Price gougers always rely on State Violence to protect them, as if other people are stepping stones on their way to The American Dream. One of the things the 2nd Amendment does is cure them of this misunderstanding. My advice to all you Price Gougers, you better sell your high-priced insulin well-armed.

What "state violence?" Are you talking about having a state troopers escort the "gougers" into the kill zone, or just having the "gougers" use muh roads? I don't understand what you are saying here.

Does the Walmart need armed guards to send in semi trucks wrapped with their trademarks loaded down with gratis relief supplies as a Grade-A loss-leader? (maybe they do; but if so, I expect they are private contractors with the Walmart)