Price gouging laws during emergencies create deadweight loss and shortages.
Is it true that price gouging laws during emergencies create deadweight loss and shortages?
Yes. Economic analysis and empirical studies during emergencies consistently indicate that price-gouging laws disrupt market clearing, induce anticipatory hoarding, and generate deadweight loss and shortages.
Verdict: SUPPORTED · 3 sources for, 0 against · Last checked
The retrieved papers include direct empirical and theoretical analyses demonstrating that price-gouging regulations lead to anticipatory consumer hoarding, market distortions, and aggravated shortages during emergencies, aligning directly with the claim. No papers refuted the claim.
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R, C. & G, R. (2021). Learning to Hoard: The Effects of Preexisting and Surprise Price-Gouging Regulation During the COVID-19 Pandemic.. doi.org. https://doi.org/10.1007/s10603-021-09493-1
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KA, C. (2023). Price Gouging, the Pandemic, and What Comes Next. doi.org. https://doi.org/10.2139/ssrn.4432812
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R, C. & G, R. (2020). Learning to Hoard: The Effects of Preexisting and Surprise Price-Gouging Regulation during the COVID-19 Pandemic. doi.org. https://doi.org/10.2139/ssrn.3672300
What does the evidence say?
The retrieved papers include direct empirical and theoretical analyses demonstrating that price-gouging regulations lead to anticipatory consumer hoarding, market distortions, and aggravated shortages during emergencies, aligning directly with the claim. No papers refuted the claim.
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