Re: End Gasoline Price Gouging

ericgorr@xxxxxxxxx writes:

> jmhall@xxxxxxxxxxxxx wrote:
> > ericgorr@xxxxxxxxx writes:
> >
> > > jmhall@xxxxxxxxxxxxx wrote:
> > > > ericgorr@xxxxxxxxx writes:
> > > >
> >
> > > > So far
> > > > you've not called for any relaxations of existing regulations
> > > > but you have assumed (in correctly) that the existing market
> > > > is a free market setting which should operate according to
> > > > standard economic competitive market theory.
> > >
> > > It remains free enough that standard economic competitive market theory
> > > still applies. Again, the consumer is not forced to purchase gas from
> > > those who are gouging and there will be a company who wants to stay in
> > > business and therefore not gouge.
> > >
> > > However, if the regulators win the day, that could change to the
> > > detriment of everyone.
> >
> >
> > The regulaters have already won the day if you're
> > claiming the oil and gas marekts are sufficinetly free
> > to be called free markets.
>
> Well, assuming your point of view is the correct one and that the
> regulators have already won the day and the oil and gas markets aren't
> sufficiently free to be called free markets, the solution would seem to
> be to work towards dumping the regulations until they can legitimately
> called free markets and _NOT_ working towards increasing the
> regulations.
>
> At least one regulation I am aware that would be quite useful to
> increase competition would be to allow anyone to import refined
> gasoline from whomever is willing to ship some over. It has been
> illegal, but I believe I heard a news report that given the current
> crisis, it will be allowed temporarily on a limited basis.
>
> Will you write to your federal representatives asking them to do this?
> (An actual stamped letter, not just e-mail.)
>
> I already have.
>
> I'll just take a guess and assume that your answer is 'no' considering
> that the only solutions you appear to be advocating are increasing
> regulations.

I would have no objection to both the effort to reduce over all
merchantilist regulation and interventions but don't particularly
care to justify government by petitioning it myself.

My responses to you were more from a pragmatic problem
analysis given the current state of the markets and not
some call for a general increase in regulatory acts by
government.

I'll leave with this last comment. While in school one
of my econ professos told us a story about a market reaction
during the big NY City blackout back in the 70s. Local stores,
surprisingly enough, implemented a quantity rationing response
and didn't set the prices to whatever the market could bear
for candles in her neighborhood. I'm sure other areas or
even other stores she didn't shop at might have had owners
making a different call. (didn't thik to ask at the time
is there was a difference between chains and mon & pop
shops). I think she was either teaching at NYU or in grad
school. The rationale given by those who were rationing was
that it would not be fair to let just a few buy all the candles
during the emergency. Seems to me quantity rationing during
unusual suypply conditions is not inherently a non-market
response. (If your concerned about the type of economic
program and background, the discussion took place in an
Austrian Economics couse and the professor is active in
that particular school of economic thought--and not
as a critic!)

jmh
.

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