Governor Greg Abbott declared a state of emergency as Hurricane Harvey made landfall, which activated a provision of the Texas Deceptive Trade Practices Act making
price gouging illegal.
If there is no attempt at
price gouging, Zwolinski points out, the consequence will not be "equitable access"; supply will be even tighter and it is doubtful that the poor will get more.
The same economic truisms hold true in the case of temporary shortages caused by storms or natural disasters--and "
price gouging." (
Price gouging is when sellers raise the price of goods a supposedly inordinate amount in response to an emergency.)
The persistent public support for "
price gouging" laws represents a challenge and an opportunity for economists who are interested in improving public understanding and appreciation of how markets work.
Price gouging is not a new phenomenon by any means.
"Some station owners illegally sell 20 liters of diesel for YR3,500 ($16) although the actual price is YR2,000 ($9)," said Bakhakh, adding that they get away with
price gouging because there is little to no chance of being punished.
Ban on
price gouging will strengthen Kazakhstan's market of electric energy.
The announcement that President Nicolas Maduro had seized control of a nationwide appliance store chain accused of
price gouging set off a Friday night frenzy among beleaguered consumers desperate for affordable goods, reports Caribbean360.com (Nov.
After Hurricane Sandy hit in the Northeast, reports of local businesses
price gouging customers became rampant in New York and New Jersey.
The debate on the matter has been wrongly cast as a price haggle or
price gouging in the U.S.
The situation reached the point that, in late October, President Obama signed an executive order directing the Food and Drug Administration to take steps to help further prevent and reduce the shortages, protect consumers and prevent
price gouging. The action directed the FDA to broaden reporting of potential shortages of certain drugs and to further expedite regulatory reviews that can help prevent or respond to shortages.