A Price Is a Signal Wrapped up in an Incentive

For discussion of liberty, freedom, government and politics.
Post Reply
User avatar
ajax
Level 34 Illuminated
Posts: 7988
Location: Pf, Texas

A Price Is a Signal Wrapped up in an Incentive

Post by ajax »


User avatar
ajax
Level 34 Illuminated
Posts: 7988
Location: Pf, Texas

Re: A Price Is a Signal Wrapped up in an Incentive

Post by ajax »

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.

Post Reply