Halea Walker and I have an op-ed appearing in the Dallas Morning News explaining that Texas’s anti-price gouging law comes with some unintended consequences.
What I most want to say about price gouging laws is, in effect, “if you mess with price discovery, you’re going to have a bad time.” Unfortunately, that claim does not resonate deeply with non-economists.
In the op-ed, we give two examples of ways the state’s enforcement of the law post-Hurricane Harvey is giving Texans “a bad time”: first, the law likely protects hoarders able to stock up fast more than it protects consumers actually distressed by the hurricane; and second, the law ends up disadvantaging small businesses to the benefit of big business.
Here is the first part of the op-ed:
In the aftermath of Hurricane Harvey, a photo of a case of bottled water selling for nearly $43 at a Houston-area Best Buy quickly…
View original post 419 more words