What's the Matter with Price Gouging?

2009 ◽  
Vol 19 (2) ◽  
pp. 275-293 ◽  
Author(s):  
Jeremy Snyder
Keyword(s):  
Economic Benefits ◽  
Price Increase ◽  
Respect For Persons ◽  
Equitable Access ◽  
Price Increases ◽  
Price Gouging

ABSTRACT:When prices for basic commodities increase following a disaster, these price increases are often condemned as 'price gouging.’ In this paper, I discuss what moral wrongs, if any, are most reasonably ascribed to accusations of price gouging. This discussion keeps in mind both practical and moral defenses of price increase following disasters. I first examine existing anti-gouging legislation for commonalities in their definitions of gouging and then present arguments in favor of the permissibility of gouging, focusing on the economic benefits of price increases following disasters. I argue that gouging takes the form of a specific failure of respect for persons by undercutting equitable access to essential goods. While I discuss anti-gouging legislation throughout this paper, my aim is to give an account of the moral wrongs associated with gouging rather than guidance for developing morally defensible anti-gouging legislation.

Fuel price increase, subsidies, overcapacity, and resource sustainability

2008 ◽  
Vol 65 (6) ◽  
pp. 832-840 ◽  
Author(s):  
Ussif Rashid Sumaila ◽  
Louise Teh ◽  
Reg Watson ◽  
Peter Tyedmers ◽  
Daniel Pauly
Keyword(s):  
Price Increase ◽  
Positive Aspect ◽  
Significant Component ◽  
Fuel Price ◽  
Fuel Prices ◽  
Resource Sustainability ◽  
Price Increases ◽  
Fishing Sector ◽  
Fuel Subsidies ◽  
Fuel Costs

Abstract Sumaila, U. R., Teh, L., Watson, R., Tyedmers, P., and Pauly, D. 2008. Fuel price increase, subsidies, overcapacity, and resource sustainability. – ICES Journal of Marine Science, 65: 832–840. Global fisheries are currently overcapitalized, resulting in overfishing in many of the world’s fisheries. Given that fuel constitutes a significant component of fishing costs, we expect recent increases in fuel prices to reduce overcapacity and overfishing. However, government fuel subsidies to the fishing sector reduce, if not completely negate, this positive aspect of increasing fuel costs. Here, we explore the theoretical basis for the expectation that the increasing fuel prices faced by fishing enterprises will reduce fishing pressure. Next, we estimate the amount of fuel subsidies to the fishing sector by governments globally to be in the range of US$4.2–8.5 billion per year. Hence, depending on how much of this subsidy existed before the recent fuel price increases, fishing enterprises, as a group, can absorb as much as this amount of increase in their fuel budget before any conservation benefits occur as a result of fuel price increases.

Residential price elasticity of demand for water

2005 ◽  
Vol 5 (6) ◽  
pp. 183-188 ◽  
Author(s):  
S. Metaxas ◽  
E. Charalambous
Keyword(s):  
Water Use ◽  
Price Elasticity ◽  
Research Study ◽  
Price Increase ◽  
Income Levels ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Price Increases ◽  
Residential Water Use ◽  
Residential Water

This paper presents an analysis on price elasticity of demand for water as a consequence of price increases. The objective of this research study is to estimate the residential price elasticities of demand for water for different regions, which may have different income levels. The general conclusion is that price elasticity for residential water use is inelastic (i.e. a given percentage of price increase results in a proportionally smaller decrease in quantity demanded) and it varies by consumer class and type of water use. The elasticity is not significantly affected by demographic and other factors.

Tobacco Price Increase and Successful Smoking Cessation for Two or More Years in Japan

2020 ◽  
Author(s):  
Keisuke Matsubayashi ◽  
Takahiro Tabuchi ◽  
Hiroyasu Iso
Keyword(s):  
Smoking Cessation ◽  
Confidence Interval ◽  
Odds Ratio ◽  
Adjusted Odds Ratio ◽  
Longitudinal Survey ◽  
Price Increase ◽  
National Longitudinal Survey ◽  
Middle Aged ◽  
Price Increases

Abstract Introduction Assessing long-term smoking cessation after tobacco price increases is more valuable than short-term cessation as smokers often relapse after temporary cessation. We investigated whether tobacco price increases were associated with long-term smoking cessation and whether the association differed according to demographic, socioeconomic, and behavioral factors, using a national longitudinal survey of middle-aged individual-level data from 10 waves, every November from 2005 to 2014. Methods Temporary and long-term at least 1 year (1y+) or 2 years (2y+) quitters were defined by smoking in any one wave and quitting in the subsequent two or three waves in a discrete-time design. November 2006 (after July 11% increase) and November 2010 (after October 37% increase) were used as proxy variables for price increases. Generalized estimating equation models adjusted for demographic, socioeconomic, and behavioral covariates, and analyses stratified by these covariates were performed to estimate the association between price increases and smoking cessation. Results Of 43 630 smokers aged 50–65, 7.7%, 5.6%, and 5.2% of smokers quit temporarily, for at least 1 year and at least 2 years, respectively. 2y+ quitters significantly increased in November 2005–November 2008 (adjusted odds ratio = 1.23, 95% confidence interval: 1.06–1.43) and November 2009–November 2012 (adjusted odds ratio = 1.85, 95% confidence interval = 1.57–2.16). In stratified analyses, higher prices were associated with 2y+ quitters in all subgroups with some exceptions, including participants who smoked 21–30 cigarettes per day and those aged 60–65. Conclusions Increasing tobacco prices may be effective in promoting long-term smoking cessation in various subgroups among middle-aged Japanese adults. Implications Few longitudinal studies have examined the effect of a tobacco price increase on long-term smoking cessation. In a national longitudinal survey of middle-aged Japanese from 10 waves, the 37% tobacco price increase was found to be a trigger for successful smoking cessation for two or more years. Price increases were significantly associated with 2y+ smoking cessation in most demographic, behavioral, and socioeconomic subgroups. Results indicate that higher tobacco prices may be effective for long-term smoking cessation in almost all subgroups. Raising tobacco taxes and prices may be one of the most effective strategies for promoting long-term smoking cessation.

scholarly journals Relationships between smoking duration, smoking intensity, hypothetical tobacco price increases, and smoking habit change intention among current smokers in Shanghai

2019 ◽  
Vol 47 (10) ◽  
pp. 5216-5228 ◽  
Author(s):  
Ruiping Wang ◽  
Yonggen Jiang ◽  
Xin Li ◽  
Qi Zhao ◽  
Meiying Zhu ◽  
...  
Keyword(s):  
Smoking Habit ◽  
Smoking Behavior ◽  
Cross Sectional Study ◽  
Retail Price ◽  
Price Increase ◽  
Chi Square ◽  
Cross Sectional ◽  
Smoking Intensity ◽  
Price Increases ◽  
Smoking Duration

Objectives We conducted a cross-sectional study to explore the effect of a hypothetical tobacco retail price increase on smoking habit change intention, and the role of smoking duration and intensity in smoking change intention. Methods In 2016 and 2017, we collected questionnaire data from 36,698 residents aged over 18 years in Songjiang district, Shanghai. Chi-square tests and weighted logistic regression were used for data analyses. Results The prevalence of current smoking was 19.78% (men: 48.36% and women: 0.22%). A total of 10.83% (men: 10.89% and women: 2.04%) and 9.39% of smokers (men: 9.42% and women: 6.12%) expressed the intention to smoke less or quit, respectively, given tobacco retail price increases. If the current tobacco retail price doubled, 75% of smokers stated that they would smoke less and 60% of smokers would consider quitting. Smokers with longer smoking duration and lower smoking intensity were more sensitive to tobacco price increases and more likely to change their smoking habits. Conclusions An increase in tobacco retail prices could induce some smokers to change their smoking behavior, particularly those with longer smoking duration and lower smoking intensity. A tobacco retail price increase is recommended, which should apply to all cigarette brands.

Standardizing Retail Payment Instruments

2000 ◽  
pp. 186-197 ◽  
Author(s):  
Simon L. Lelieveldt
Keyword(s):  
Middle Ages ◽  
Government Regulation ◽  
Municipal Government ◽  
Time Frame ◽  
Economic Benefits ◽  
The Public ◽  
Price Increases ◽  
Payment Instruments ◽  
Money Transfers ◽  
Mere Existence

The business of payments and the provision of payment instruments have a rich history, which can be drawn upon in a discussion of standardization. In the middle-ages, for example, the mere existence of a wide variety of foreign and local coins led to a flourishing business of money exchange offices and cashiers in the Netherlands. Malpractices of some of these firms, mostly in the form of physical tampering with coins and alloy, resulted in government regulation on a municipal and province level. Yet, as these type of regulations where hard to enforce, the Amsterdam municipal government decided in 1609 to establish a municipal exchange bank, ‘de Amsterdamse Wisselbank’, originally as a government monopolist. The motivation for doing so was to prevent the regular price-increases of the good coins, to eliminate confusion to the public and to facilitate trade by providing good coins. Later on, in 1621, the regulations were adapted to the actual business practice and private cashiers were allowed – under certain conditions – to conduct business in the city of Amsterdam (van den Berge, 1939, p 34). The example shows us how a diversity of specifications and a diversity of payment instruments, will lead to the development of separate companies which make money by reducing the confusion for their consumers. It illustrates that the abuse of technological know-how and abilities for the sake of increased economic benefits by a few private companies may lead to government intervention for the sake of public interest. Furthermore it indicates that strong market powers may prevail, even in the case of restricted government regulation. As such the example contains all relevant issues with respect to IT-standardization: • can it be assumed that the market will standardize if necessary? • what role should governments play in this process? • does the end-user play a role in this process? In this chapter, I will examine the above standardization issues with respect to the retail payment instruments, developed and in use since the beginning of this century. In this time frame bank notes and coin have been widely available to the public as a basic (and standardized) payment instrument. I will however not include these instruments in this study and limit myself to a study of the standardization of noncash payment instruments that have been available to the consumer. These payment instruments can be seen as the technical means with which consumers effect money transfers to each other. Examples of payment instruments are the forms for credit transfers or in-payments, the debit- or credit cards or home-banking software. It is my opinion that, given the availability of cash an alternative payment instrument, the standardization processes of noncash payment instruments can be seen as the ‘pure’ result of market forces. The study of this process, applied to different types of instruments within one application and industry domain, will hopefully provide additional insight.

A Dragging-Down Effect: Consumer Decisions in Response to Price Increases

2020 ◽  
Author(s):  
Shirley Zhang ◽  
Abigail B Sussman ◽  
Christopher K Hsee
Keyword(s):  
Price Increase ◽  
Unit Price ◽  
Current Work ◽  
Policy Makers ◽  
Consumer Decisions ◽  
Price Increases ◽  
Acceptable Range ◽  
Purchase Quantity

Abstract Four studies, across a range of domains, find a dragging-down effect in which consumers purchase fewer units of a product when a discount applies to more units. For example, consumers buy fewer peaches when each customer can buy up to three peaches at a discount than when each customer can buy only one peach at a discount or when there is no discount at all. In contrast to basic economic principles, this dragging-down effect implies that consumers purchase less (more) when the per-unit price is lower (higher). We propose and our results support an acceptability account: consumers will adopt the price-increase point (i.e., maximum discounted quantity) as their purchase quantity if that point falls within an acceptable range, and will ignore that point and purchase their initially preferred quantity instead if the price-increase point falls below the acceptable range. The current work enriches existing research on anchoring and pricing and carries implications for consumers, marketers, and policy-makers.

scholarly journals Die verskaffing van elektrisiteit deur Eskom: Die impak van beurtkrag en hoër pryse op die Suid-Afrikaanse ekonomie

2014 ◽  
Vol 33 (1) ◽  
Author(s):  
Ben J. Volkwyn ◽  
Ewert P.J. Kleynhans
Keyword(s):  
South African ◽  
Computable General Equilibrium ◽  
Price Increase ◽  
Load Shedding ◽  
Negative Effects ◽  
Computable General Equilibrium Models ◽  
Price Increases ◽  
Industrial Sectors ◽  
Energy Provider ◽  
Electrical Consumption

This study investigates alternative ways to manage the electricity supply by the South African energy provider, Eskom, with specific focus on the choice between higher tariffs and load shedding. Both choices will harm the country’s economy, and optimal managerial choices are, therefore, essential. The empirical research applies Computable General Equilibrium models (CGE). Scenarios on both price increases in electricity and supply reductions in supply were planned to determine what their effect would be on the country's economy as a whole, on specific industrial sectors and the effect on households. Estimates suggest that the supply of electricity in the country should increase by at least 10% to sustain the grid and thus avoid power cuts. The price increase approved by the national regulator,however, will be too little to increase supply and neither will it compel consumers to use less.This price increase will reduce electrical consumption by only 3.3%. On the other hand, if a 10% decrease in the output of electricity is permitted through load shedding, for example, the negative effects could be even more severe. This would be especially true of sectors that are electricity intensive, such as mining and manufacturing. When comparing these two scenarios,increases in the consumer price of electricity would be more preferable than electricity reduction through power cuts.

scholarly journals Economic Value of Equalization of Access and ICT Infrastructure for Rural Communities

2020 ◽  
Vol 10 (2) ◽  
pp. 113
Author(s):  
Vidyantina Heppy Anandhita
Keyword(s):  
Rural Communities ◽  
Rural Areas ◽  
Economic Value ◽  
Internet Access ◽  
Economic Benefits ◽  
Equitable Access ◽  
Government Investment ◽  
It Business Value ◽  
Study Results ◽  
The Government

<p><em>The government has initiated access and telecommunication infrastructure equalization program in Indonesia by deploying BTS to provide signals in the frontier, outermost, and least developed (3T) regions and providing rural internet access services. Government investment through the provision of telecommunications and internet access in rural areas is expected to be able to provide economic benefits for improving the people’s welfare. This study aims to identify the economic benefits of equitable access and infrastructure in rural areas (mainly 3T villages) with the Ranti Generic IS/IT Business Value Table. Based on the study results, it can be concluded that in ideal conditions, equitable access to the internet and telecommunications infrastructure can contribute directly to cost efficiency for rural communities by reducing distribution costs and telecommunications costs. Also, the use of telecommunications and internet access can improve the people’s welfare by increasing business capacity and expanding market segmentation.</em></p>

The Accuracy of Consumers’ Perception of Future Inflationary Price Changes

2011 ◽  
Vol 219 (4) ◽  
pp. 209-216 ◽  
Author(s):  
Fabian Christandl ◽  
Tommy Gärling
Keyword(s):  
Laboratory Experiments ◽  
Price Increase ◽  
Future Price ◽  
Time Interval ◽  
Price Changes ◽  
Price Increases ◽  
Proportional Increase ◽  
The Common

Four laboratory experiments were conducted to investigate the extent to which and how consumers encountering inflationary increases in product prices are able to accurately extrapolate future price increases. Between 32 and 48 undergraduates participated in the different experiments. In Experiment 1 it was found that participants were more able to extrapolate a proportional increase when presented with two consecutive proportional price increases compared to one price increase. This finding was not replicated for decreasing prices in Experiment 2. Experiment 3 showed that varying the time interval between prices counteracted an accurate extrapolation of proportional price increases despite that two price increases were presented. In Experiment 4 it was found that presenting the same (vs. different) proportional price increases for two products made participants able to extrapolate the common proportional price increase.

scholarly journals The effects of COVID-19 vaccines on economic activity

2022 ◽  
Vol 158 (1) ◽  
Author(s):  
Pragyan Deb ◽  
Davide Furceri ◽  
Daniel Jimenez ◽  
Siddharth Kothari ◽  
Jonathan D. Ostry ◽  
...  
Keyword(s):  
Economic Activity ◽  
High Frequency ◽  
Nonlinear Effects ◽  
Economic Benefits ◽  
Economic Effects ◽  
Equitable Access ◽  
Vaccination Rates ◽  
Containment Measures ◽  
Cross Country ◽  
Country Specific

AbstractThis paper empirically examines the economic effects of COVID-19 vaccine rollouts using a cross-country daily database of vaccinations and high-frequency indicators of economic activity—nitrogen dioxide (NO2) emissions, carbon monoxide (CO) emissions, and Google mobility indices—for a sample of 46 countries over the period December 16, 2020 to June 20, 2021. Using surprises in vaccines administered, we find that an unexpected increase in vaccination per capita is associated with a significant increase in economic activity. We also find evidence for nonlinear effects of vaccines, with the marginal economic benefits being larger when vaccination rates are higher. Country-specific conditions play an important role, with lower economic gains if strict containment measures are in place or if the country is experiencing a severe outbreak. Finally, the results provide evidence of spillovers across borders, highlighting the importance of equitable access to vaccines across nations.

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