Mises Wire
Author:
Llewellyn H. Rockwell Jr.
Online Publish Date:
Tim Harford offers an interesting analysis of the great XBox shortage of 2005. They are selling for $300, except that they are not selling because there is a massive shortage. He asks the question: why doesn’t Microsoft raise the price to $700 or more in order to clear the market, since that’s the price they are selling for on Ebay? This is an