Market Failure and Natural Disasters: A Reexamination of Anti-Gouging Laws

Public Contract Law Journal, Vol. 37, No. 4, 2008

Posted: 23 Jul 2011

See all articles by David Skarbek

David Skarbek

Brown University - Department of Political Science

Date Written: 2008

Abstract

This article first reviews Professor Rapp’s conclusion that economic arguments offer a decidedly negative view of anti-gouging laws. It then analyzes and critiques Professor Rapp’s economic defense of such regulations by (1) applying a standard economic concept - elasticity - and highlighting the role of the market as a discovery process and (2) addressing behavioral economics’ assumptions about individuals’ responsiveness to price changes. Finally, this article offers recommendations concerning such laws.

Suggested Citation

Skarbek, David, Market Failure and Natural Disasters: A Reexamination of Anti-Gouging Laws (2008). Public Contract Law Journal, Vol. 37, No. 4, 2008, Available at SSRN: https://ssrn.com/abstract=1893547

David Skarbek (Contact Author)

Brown University - Department of Political Science ( email )

Box 1844
Providence, RI 02912
United States

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