Even for the more complicated case if there is anti-gouging it just means you have to price to good for the totality of history rather than a spot time price. This will mean that in calm times the price will be a bit higher. Any seller that would sell at a lower price taking only calm time realities into account would suffer unmitigated shocks from rare events.
With inflation increasing over time, this ‘totality price’ becomes less and less possible or effective.
I guess I should have shot for possiblity rather than temporal extent. I for example believe that retail stores track and factor in theft ie they will assume and calculate that 1000$ worth of goods will just disappear off the shelfs with no transaction involved. Then if a secruity guard can for 600$ make only 200$ disappear in the same period it makes financial sense to hire the guard. The 600$ salary for the guard will be from legitimate purchaces of the product. So if the profit target of the company is kept the same a shop in a low crime area can afford lower prices as they don’t have to source security guard salaries on it.
If the shop is exposed to risk of not being able to have access to a functioning market at crisis times it will have to hedge against it or perish like a shop that didn’t hedge against theft would go under when robbed.
With inflation increasing over time, this ‘totality price’ becomes less and less possible or effective.
I guess I should have shot for possiblity rather than temporal extent. I for example believe that retail stores track and factor in theft ie they will assume and calculate that 1000$ worth of goods will just disappear off the shelfs with no transaction involved. Then if a secruity guard can for 600$ make only 200$ disappear in the same period it makes financial sense to hire the guard. The 600$ salary for the guard will be from legitimate purchaces of the product. So if the profit target of the company is kept the same a shop in a low crime area can afford lower prices as they don’t have to source security guard salaries on it.
If the shop is exposed to risk of not being able to have access to a functioning market at crisis times it will have to hedge against it or perish like a shop that didn’t hedge against theft would go under when robbed.