Neocon -
<...Therefore, although I agree there is a ceiling to price- gouging, lest the field become too attractive, there is a substantial latitude to impose terms in a monopolistic fashion....
As long as we are talking about voluntary exchanges, 'price-gouging' is a meaningless concept, usually used for political purposes. For example, it is used in Florida to describe the price of plywood before and after a hurricane. It is used when gas station owners try to extend their supplies to the next delivery. These actions are entirely proper and tend to allocate products to the customers with the most urgent needs. Politicians' actions against 'price-gouging' are simply another form of price control, and, as at all other times, it leads to shortages and rationing. It makes no more sense than, say, 'vicious boycotting'.
Every seller attempts to extract the highest price possible, with considerations for future relationships, and every buyer pursues the lowest price possible, under all conditions. If both parties do not agree that they will benefit from the exchange, it will not be made.
Regards, Don |
