A Price Is a Signal Wrapped up in an Incentive
- ajax
- Level 34 Illuminated
- Posts: 7988
- Location: Pf, Texas
- ajax
- Level 34 Illuminated
- Posts: 7988
- Location: Pf, Texas
Re: A Price Is a Signal Wrapped up in an Incentive
This of course means that naughty things like alleged "price gouging" in an emergency is nothing more than the market signaling and incentivizing conservation and re-supply. You don't need a politician yelling at you to CONSERVE. The price mechanism has already signaled that info to you.
This is why price controls of any sort, even for "good reasons", distorts the information trying to be conveyed in the marketplace and makes matters worse.
This is why price controls of any sort, even for "good reasons", distorts the information trying to be conveyed in the marketplace and makes matters worse.