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FTC asked to investigate gas prices for possible gouging

There is no such thing as "price gouging."
Anyone who believes in it has not taken or understood freshman level econ.
 
I wish the article would reference what law there is against "gouging" - I was unaware of any other than laws against price collusion.
 
"Price gouging" says that I am immoral for selling something at the price demand allows.

Lets say I have one widget for sale.
3 people want to buy it.
person X will pay $2
person Y will pay $3
person Z will pay $4
Why not sell it for $4?
"Price gouging" suggests that selling to Z is immoral
 
Originally posted by: glen
There is no such thing as "price gouging."
Anyone who believes in it has not taken or understood freshman level econ.
Click to expand...

of course there is such a thing as price gouging. once you move beyond the simplistic theoretical world of beginning economics courses and realize that there is no absolute free market, the interplay of law and economics does try to establish what is legal pricing behavior and what is price gouging. For example, with the aftermath of Hurricane Andrew in Miami, opportunistic vendors went down to southern florida selling water at ridiculously high prices because there was no access to water. as a result, Florida enacted a statute making this behavior illegal.
 
Originally posted by: xuanman
Originally posted by: glen
There is no such thing as "price gouging."
Anyone who believes in it has not taken or understood freshman level econ.
Click to expand...

of course there is such a thing as price gouging. once you move beyond the simplistic theoretical world of beginning economics courses and realize that there is no absolute free market, the interplay of law and economics does try to establish what is legal pricing behavior and what is price gouging. For example, with the aftermath of Hurricane Andrew in Miami, opportunistic vendors went down to southern florida selling water at ridiculously high prices because there was no access to water. as a result, Florida enacted a statute making this behavior illegal.
Click to expand...
You don't get it.
Unless you allow some redneck from GA to drive over selling bottled water for $5 each, NO ONE will besides volunteers.
now, if there were enough volunteers, no one would buy the friggin expensive water.
 
Originally posted by: glen
"Price gouging" says that I am immoral for selling something at the price demand allows.

Lets say I have one widget for sale.
3 people want to buy it.
person X will pay $2
person Y will pay $3
person Z will pay $4
Why not sell it for $4?
"Price gouging" suggests that selling to Z is immoral
Click to expand...

Thanks.

I hate to tell you as much as the government does not think so, gas is a necessity in the modern world.

Go back to school.
 
Originally posted by: Kiyup
Originally posted by: glen
"Price gouging" says that I am immoral for selling something at the price demand allows.

Lets say I have one widget for sale.
3 people want to buy it.
person X will pay $2
person Y will pay $3
person Z will pay $4
Why not sell it for $4?
"Price gouging" suggests that selling to Z is immoral
Click to expand...

Thanks.

I hate to tell you as much as the government does not think so, gas is a necessity in the modern world.

Go back to school.
Click to expand...

by that logic, you support socialized medicine and don't understand the problems with it

 
If the gas companies bumped the price of gas to $5 a gallon, people would still buy it since they need to use their cars.

What you're talking about is free enterprise.

Besides, what does it have to do with medical care and a socialist system.
 
Originally posted by: ryzmah
I wish the article would reference what law there is against "gouging" - I was unaware of any other than laws against price collusion.
Click to expand...

if there is colusion on the parts of more than one company to set the price of a commodity in a market, it falls under racketteering.
also possible consumer fraud.
 


Originally posted by: Kiyup
If the gas companies bumped the price of gas to $5 a gallon, people would still buy it since they need to use their cars.

What you're talking about is free enterprise.

Besides, what does it have to do with medical care and a socialist system.
Click to expand...
You advocate regulating prices on things perceived to be necessary, like Gas or medicine
 
I think the problem with trying to put "free market" standards on things like this is that these are more of needs than they are luxeries. If they raised the price of electricity to an outrageous amount... it's relatively the same. Forgive me for not understanding economics too well, but supply and demand can't be the only thing controlling the prices on essential items.
 
You advocate regulating prices on things perceived to be necessary, like Gas or medicine
Click to expand...
Gas and medicine aren't necessary? Maybe in some parts of the US, gas isn't necessary, but in many other parts, gas is necessary.

What oil companies are charging us isn't illegal, oil costs in other parts of the world are still higher than what we pay. The US is using some of the cleanest fuel in the world, yet we pay the least for it. Also, according to inflation, we are paying less for fuel than what we were many years ago. Complaining about gas prices doesn't get you much, stopping the purchase will go further in showing these oil companies what we're made of! Ready for the committment? Lets all go out and buy our fuel cell car, or even the electric car!

I pay what I have to pay, I rarely look at the pump prices now. The last time I purchased a car, I made sure it was at least 20/30 for the mileage. While I still have to pay, I'm not buying fuel as frequently as some of the SUV owners I know. Until fuel cell rides become the norm, we will continue to see gas prices rise as oil companies continue to milk petrol while we continue to drink it up so fast.

vash
 
Originally posted by: glen
"Price gouging" says that I am immoral for selling something at the price demand allows.

Lets say I have one widget for sale.
3 people want to buy it.
person X will pay $2
person Y will pay $3
person Z will pay $4
Why not sell it for $4?
"Price gouging" suggests that selling to Z is immoral
Click to expand...


The point of diminishing returns.....

The Nations Economy is very much tied to Fuel Prices and if ALL of them choose to raise the prices then tell us what happens?
 
Originally posted by: glen
Originally posted by: xuanman
Originally posted by: glen
There is no such thing as "price gouging."
Anyone who believes in it has not taken or understood freshman level econ.
Click to expand...

of course there is such a thing as price gouging. once you move beyond the simplistic theoretical world of beginning economics courses and realize that there is no absolute free market, the interplay of law and economics does try to establish what is legal pricing behavior and what is price gouging. For example, with the aftermath of Hurricane Andrew in Miami, opportunistic vendors went down to southern florida selling water at ridiculously high prices because there was no access to water. as a result, Florida enacted a statute making this behavior illegal.
Click to expand...
You don't get it.
Unless you allow some redneck from GA to drive over selling bottled water for $5 each, NO ONE will besides volunteers.
now, if there were enough volunteers, no one would buy the friggin expensive water.
Click to expand...

of course other people will still go and sell water, even if the govt. mandates a price cap. maybe you should be the one to go back to your basic economics text and look at what the supply and demand curve tell you.
 
i guess doctors are price gouging
rolleye.gif
 
Originally posted by: dahunan
Originally posted by: glen
"Price gouging" says that I am immoral for selling something at the price demand allows.

Lets say I have one widget for sale.
3 people want to buy it.
person X will pay $2
person Y will pay $3
person Z will pay $4
Why not sell it for $4?
"Price gouging" suggests that selling to Z is immoral
Click to expand...


The point of diminishing returns.....

The Nations Economy is very much tied to Fuel Prices and if ALL of them choose to raise the prices then tell us what happens?
Click to expand...



he's also missing the point of colusion. persons xyz sit down for a meeting, decide to all raise prices together. as there are no real alternatives, consumer pays xyz's price regardless with xyz laughing all the way to the bank.
 
What part of

"Oil and gasoline are commodities traded on the markets.

Oil companies do not set the price.
"

do you people not understand?
 
Originally posted by: xuanman
Originally posted by: glen
Originally posted by: xuanman
Originally posted by: glen
There is no such thing as "price gouging."
Anyone who believes in it has not taken or understood freshman level econ.
Click to expand...

of course there is such a thing as price gouging. once you move beyond the simplistic theoretical world of beginning economics courses and realize that there is no absolute free market, the interplay of law and economics does try to establish what is legal pricing behavior and what is price gouging. For example, with the aftermath of Hurricane Andrew in Miami, opportunistic vendors went down to southern florida selling water at ridiculously high prices because there was no access to water. as a result, Florida enacted a statute making this behavior illegal.
Click to expand...
You don't get it.
Unless you allow some redneck from GA to drive over selling bottled water for $5 each, NO ONE will besides volunteers.
now, if there were enough volunteers, no one would buy the friggin expensive water.
Click to expand...

of course other people will still go and sell water, even if the govt. mandates a price cap. maybe you should be the one to go back to your basic economics text and look at what the supply and demand curve tell you.
Click to expand...

Huh?
THAT IS EXACTLY what the curves tell us.
under certain price, none is supplied.

 
he's also missing the point of colusion. persons xyz sit down for a meeting, decide to all raise prices together. as there are no real alternatives, consumer pays xyz's price regardless with xyz laughing all the way to the bank.
Click to expand...
Colusion is also illegal, and difficult.
it probably can happen if OPEC stays unified, but in reality, it doesn't happen.
ADM recently got in trouble for it, but for acorbic acid or something only tarded by a Few people in a specialized area.
 
OK, it all comes down to one thing.

The Gas companies know that people will buy gas no matter how much it costs cause they have to go to work, and the store, and pick up the kids. So the price(what the are charging) of gas goes up and up, where as the cost of it stays the same. You can't tell me that it costs more to get oil out of the ground than it used to. Oil is a resource that is already there, the companies are taking a free product from the ground and making money off of it. we are the suckers that pay som much for it. We screwed ourselves.
 
if anyone pays attention to cigarette prices they know theres collusion there. but the price increase system was set up so long ago that all the guys that did it are now dead. no witness, no evidence beyond the pricing behavior itself = no case
 
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