A Primer on Price Controls
by Merrill Matthews on 02/24/2006
2 Pages
Synopsis:
Politicians are once again flirting with price controls. A price is a powerful conveyor of information to both buyers and sellers. Most companies engage in "differential pricing," so that low-income people have access to their products. But price controls actually hurt low-income people because they keep prices artificially high, plus they stifle competition and destroy innovation.
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