The Morality of Surge Pricing
Russ Roberts

Talk about red herrings. Sure… there is surge pricing in general; then there is surge pricing during a calamity. While I don’t agree with the “author’s” contention that calamity justifies surge pricing, there is also nothing in this piece which justifies surge pricing as a general practice.

This reminds me of those folks who blindly (or in a well compensated sense) posit the existence of a truly free market. Laughable. Monopoly is just one of the conditions which limit the ability of a market to be free (or do you believe that monopolies signify that some commercial interest merely “won” a particular war in the marketplace).

A handful of years back, it was particularly in vogue to paraphrase Adam Smith, the author of “Wealth of Nations.” Unfortunately, most who quoted his work cherry picked phrases and concepts without crediting his very real sense of hazard presented by the wealthy and those motivated only by profit. Perhaps as egregiously, many commonly available editions of that work are heavily abridged, sometimes for specific political reasons. This considerably limits the value of an admittedly large and cumbersome volume.

If that bastion of the free market understood that the market is not truly free, why should you not understand that, and in turn, speak more accurately and honestly about how large businesses pursue goals and create outcomes?

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