Heterodox Rightist@RightHeterodoxy
Price gouging during emergency situations is good, especially during a pending natural disaster.
Most would probably agree that the objective is to save the maximum number of lives possible.
Given that is the overriding concern when a natural disaster is imminent, consider possible paths:
1. PRICE GOUGING IMPERMISSIBLE
Meteorological forecasts predict the likelihood of a major storm entering the area. Local government urges citizens to evacuate and then imposes an order that prices remain fixed starting immediately.
Demand for gasoline spikes as large numbers decide to flee. Emergency situations also induce panic and people try to over prepare by encouraging some people to take more than they need.*
The gasoline will run out and those who were lucky enough to be early to fill their tanks essentially won a lottery. There will still be large numbers of people without gasoline and unable to flee.
2. PRICE GOUGING PERMISSIBLE
Meteorological forecasts predict the likelihood of a major storm entering the area. Local government urges citizens to evacuate. In response gas stations in the area increase the price of gasoline.
Demand spikes, but prices make hoarding prohibitively expensive. People assess their lives are more important so they still buy, but the high prices discourage hoarding and buy enough to leave the affected area and then fill up again in adjacent counties less likely to be affected by the storm.
The distribution of gasoline is, then, wider.
High prices also encourage firms to divert supply to affected regions.
This ensures that the availability of gasoline is higher and further increases the number of people who are able to evacuate.
As @skenzyme points out, we also want people to evacuate. Rationing will just cause people to delay leaving as they shop around to fill their tanks.
Will there be some people that are either priced out? Possibly.
Recall, nonetheless, that the objective is to maximize the number of lives saved. Price gouging makes wider distribution possible and serves as an automatic signal to increase supply while discouraging excessive hoarding.
On net more lives are saved this way. The alternative is a lottery that creates more death.
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*I have been guilty of this. During the onset of the SARS-CoV-2 outbreak I began stockpiling toilet paper and other essentials two weeks early. I did not need to buy additional toilet paper for another year and had boxes of Ramen noodles that I did not finish for approximately eighteen months.