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Assignment Overview
Natural Disaster and the Retail Business Owner
In the aftermath of Hurricane Sandy, which hit the greater New York area in November 2012, the news was full of examples of price gouging-gasoline for $4 per gallon, a loaf of bread for $7, double rates for motel rooms, and on and on. This is a frequent response by retailers in the wake of natural disasters. The retailers involved (and not a few economists) argue that raising prices is a natural response to supply shortages and it is their right as business owners or managers to set their prices at levels that serve their interests. Many others (including politicians who favor laws against price gouging in such situations) take a dim view of what they see as taking advantage of consumers caught in vulnerable circumstances where choices for needed products and services are few. What do you think?Case Assignment
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