Greg_Z
Premium
join:2001-08-08
Springfield, IL
 ·Comcast
| Re: [News] Price gouging, would we have a case? Well for one, you would have to prove the fact that they are "Price" gouging, along with the fact that there are no other alternatives. Since Insight has deemed this as 'fair' pricing, and the fact you would also have to prove that there are circumstances resulting from what you perceive as "Price" gouging.
Price gouging refers to a seller asking a price for a good or service that is much higher than what is seen as the 'fair' price. It is usually used in a pejorative sense to imply the price is unethical. However, according to economic theory what is referred to as 'price gouging' can be regarded as a rational response to differing circumstances. Some people also robustly defend the right of firms to charge what they want regardless of the circumstances.
In very rough legal terms, which is the most common usage, price gouging is the practice of those supplying goods and services sharply raising the prices asked in anticipation of or during a civil emergency, or cancelling contracts in order to take advantage of an increase in prices related to such an emergency. The term is similar to profiteering but can be distinguished by being short-term and localized, and by a restriction to essentials such as food, clothing, shelter, medicine and equipment needed to preserve life, limb and property. In many jurisdictions, price gouging is a felony.
Some support the ability to raise prices under such circumstances, asserting that government prohibition of the practice is a violation of individual rights or that the ability to raise prices has beneficial effects or both. While some economists who defend the practice use the term "price gouging", others disparage it as merely pejorative.
The term is not in widespread use in economic theory but is sometimes used to refer to practices of a coercive monopoly which raises prices above the market rate that would otherwise prevail in perfect competition. [1] [2] Alternatively, it may refer to suppliers benefiting to excess from a short-term change in the demand curve.
»en.wikipedia.org/wiki/Price_gouging
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One man's customer loyalty is another man's misguided arrogance. |
