Price-gouging: a lesson from Raleigh

Price-gouging laws are another instance of “fixing” a problem by making it worse. Here is a video from Art Carden that explains. Simply put, after a disaster, a (temporarily) high price acts like a cattle call to bring supply where it’s needed from where it’s plentiful:

The video is based on Duke professor Michael Munger’s piece from 2007, “They Clapped: Can Price-Gouging Laws Prohibit Scarcity?

Jon Sanders / Research Editor and Senior Fellow, Regulatory Studies

Jon Sanders studies regulatory policy, a veritable kudzu of invasive government and unintended consequences. As director of regulatory studies at the John Locke Foundation, Jo...