To Gouge or Not to Gouge?
You are probably familiar with the term “price gouging.” I’m talking today about price gouging in a specific market where demand for a good has suddenly skyrocketed. For instance, after a natural distaster demand for water, food, flashlights, etc…becomes very high. Wikipedia says, “Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair.” Now the obvious problem is, who decides what price is reasonable and fair? But there’s a more fundamental problem than that even. Let’s take an example like New Orleans after Hurricane Katrina….
