General Discussion
In reply to the discussion: Rental Car Gouging [View all]ProfessorGAC
(64,827 posts)Last edited Sat Jul 10, 2021, 07:54 PM - Edit history (1)
This meets the literal definition of gouging, but microeconomically, gouging typically includes an element of essential demand.
There is no essential demand with rental cars in vacation destinations. People don't HAVE TO take a vacation when supply is weak.
The sudden increases in retail price when some locales ran dry of gas after the pipeline fiasco, by stations in nearby locales comes much closer to gouging as the term is typically applied.
Gas has essential demand. Adding onto the already supply constricted higher price was clearly an opportunistic exploitation of a temporary condition & ensuing panic.
There is no panic over rental cars. Nobody MUST have a rental car.
Is it economic condition exploitation? Yes, it sure looks like it.
Is it conventional gouging? Probably not.