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Pastimes : Austrian Economics, a lens on everyday reality
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To: Neocon who wrote (67)12/14/2001 3:38:03 PM
From: Don Lloyd1 Recommendation  Read Replies (1) of 445
 
Neocon -

An added thought on the plywood and the Florida hurricane -

If a retailer is not allowed to raise his price to reflect the current value of plywood to his customers, there will be little incentive for him to make extraordinary efforts to bring in large quantities of plywood in advance from states that are not in the path of the hurricane. Or, if he does have large amounts on hand, and his prices don't reflect current value, then third parties will come in and buy up large quantities from him at the normal price and resell it on the black market at even higher prices than he would have charged (gouged) to the people who really need it.

Regards, Don
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