If It “Feels” Wrong, People Oppose What They Know Is Right

Dave Killion — December 5, 2012

Both Antony and  have posted previously on the evils and unintended consequences of post-disaster price controls (better known as anti-gouging regulation), but the fact is that high mark-ups would seldom occur even in the absence of such regulation. As Uber has discovered, consumers simply won’t forgive it

 “….the day after Sandy, the limo-summoning service doubled the price of a ride in New York City. And now, the PR maelstrom has made landfall”….”Uber says it has no choice but to double fares in order to convince the maximum number of drivers to get on the road. The company calls this “surge pricing.” Uber paints surge pricing as serving the greater good by leaving fewer people stranded while public transit in the city is still so spotty”….”Paul Carr over on PandoDaily reamed Uber and cited warnings from New York and New Jersey officials to to portray surge pricing as no different from a New York City bodega charging $5 for a bottle of water after the storm that would normally cost $2.50.

“Uber’s response to Sandy gives a useful foretaste of what (Uber CEO) Travis Kalanick has in mind when he promotes his utopian ideal of a totally unregulated cab market.” 

You might think this is simply a matter of educating people to the benefits of ‘gouging’. You would be wrong –

….”a famous study…. found most people didn’t care if raising prices significantly in times of scarcity were the quickest path to curbing that scarcity. Nobel laureate Daniel Kahneman found that people said they considered such price hikes unfair and that they would punish businesses that engaged in the practice.”

I guess this is what you get in a society which gives so much importance to feelings, and so little to reason.

Comments

missy says

Have you thought about getting more in to the reddit community? You start in a subreddit where you know you’ll be popular (http://www.reddit.com/r/libertarian where you’ve got over 70 thousand people who agree with you), you make some good points, share some good links and those people that already agree with you vote you to the front page where you start getting reddit credit (karma) and tadah! People start to listen up!

— December 5, 2012

missy says

and FYI, username BiggestLibertarian is available!!

— December 5, 2012

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