price gouging

Question 1

3 beliefs he rebuts about price gounging

Answer 1

1. laws prohibiting price gouging are morally justified
2. price gouging is morally bad behavior even if its not illegal
3. price gouging reflects poorly on the moral character of the person engaging in it

Question 2

price gouging

Answer 2

practice of raising prices on certain goods during times of disaster or emergency that appear unfairly high

Question 3

price ceilings unfair for sellers?

Answer 3

setting limits on price increases don’t account for increase costs faced by sellers during emergency –> unfair to seller

Question 4

laws against price gouging prevent what

Answer 4

mutually beneficial exchanges (making vulnerable people worse off)

Question 5

what can price gouging laws lead to

Answer 5

shortages or surpluses –> harm consumers

Question 6

what is the proposal regarding these laws

Answer 6

laws should be repelled due to harmful nature to markets and exchanged even if price gouging is morally wrong

Question 7

arguments about coercion of price gouging

Answer 7

1. customers consent
2. harm from disaster experienced not price gouging itself

Question 8

arguments against exploitation

Answer 8

1. mutually beneficial exploitation (both benefit but one party is exploited)
2. charity –> benefits from distress so why is price gouging any different

Question 9

allocative efficiencies of prices

Answer 9

role of prices –> allocate resources efficiently in a market economy, ensures goods go to those who value them the most (scarce goods get rationed efficiently)

disaster/emergency –> scarcity is increased –> efficient allocation is crucial

Question 10

signaling functions of prices

Answer 10

higher prices during emergency –> help prioritize those resources to those who need them the most
- hotel room increases –> families find alternative lodging –> reveals who needs it the most and allocates it to them

Question 11

market competition and price mechanisms

Answer 11

vital role in resource allocation

Question 12

with market competition and price mechanisms leading to better outcomes than other alternatives, price gouging

Answer 12

is morally permissible –> serves as mechanism for efficient resource allocation during scarcity

Question 13

do all price gougers have bad character?

Answer 13

not enough evidence to suggest all price gougers have bad moral character

Question 14

summary of 3 points

Answer 14

1. laws –> repealed: laws can harm vulnerable buyers and create disincentives for helping those in need
2. price gouging –> can be mechanism that allocates scarce resources to those who need it most (morally permissible under certain conditions)
3. not all price gougers are bad people