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-   -   Is price gouging the morally right thing to do? (http://www.actuarialoutpost.com/actuarial_discussion_forum/showthread.php?t=347125)

Colonel Smoothie 03-14-2020 09:27 PM

Is price gouging the morally right thing to do?
 
I'm confused by the sentiments on social media shaming people and stores for gouging or reselling this or that wad of toilet paper or whatever during the epidemic. Sounds like shops are being punished for doing the right thing.

It seems like the best way to get producers to produce more of something during a crisis is to raise prices, otherwise you just kind of run out of stuff and people are left empty handed.

Would people rather not have what they need as long as rich people can't have it either? I don't really get it.

Shish-Kabalah 03-14-2020 09:58 PM

Dude people are dying.

d123454321 03-14-2020 10:11 PM

The stores should slightly raise the price. The problem is when stores do that regulators go after them.

So they keep the price low and jerks clean them out with. Nothing to lose.

If they moderately raised the price it would likely temper panic buying so Lives can be saved.

Not letting prices to rise and letting jerks clean out a store with no cost doesn't save lives. And limits isnt going to be super effective if people can double dip a store.

ao fan 03-14-2020 10:13 PM

wtf CS :x

Whiskey 03-14-2020 10:13 PM

Quote:

Originally Posted by Shish-Kabalah (Post 9827626)
Dude people are dying.

:iatp:

ao fan 03-14-2020 10:15 PM

what do you mean by "rich people"? rich people don't want to be paying $100 for a roll of toilet paper either. it's evil.

SlowMotionWalter 03-14-2020 10:22 PM

Quote:

Originally Posted by Shish-Kabalah (Post 9827626)
Dude people are dying.

Maybe CS wasn't aware there is a pandemic and he's just speaking hypotheticals.

Whiskey 03-14-2020 10:24 PM

Quote:

Originally Posted by SlowMotionWalter (Post 9827636)
Maybe CS wasn't aware there is a pandemic and he's just speaking hypotheticals.

No, this is just CS being CS
Read the OP

Colonel Smoothie 03-14-2020 10:26 PM

Quote:

Originally Posted by Shish-Kabalah (Post 9827626)
Dude people are dying.

The toilet paper factory isn't going to make more toilet paper unless prices rise. They might have to install another production line to meet crisis demand and a higher price will incentivize them to do so.

The alternative is that the toilet paper just doesn't get made and nobody gets any other then those who bought first.

Lucy 03-14-2020 10:41 PM

The toilet paper factory physically can't put more paper on the shelves immediately. And yes, they will make more toilet paper at the old price, and by the time it gets to the market, people won't be willing to pay a lot more than that. Because we aren't all going to be using a lot more toilet paper. And we don't actually need a big increase in production.

Also, people don't die from lack of toilet paper. Certainly not if they have adequate soap and water.


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