Those fleeing a hurricane would likely pay a higher price, but the gas giveaway meant many gallons were given to those out of harm’s way, who ultimately consumed several gallons waiting in the long lines for their free $25 fill-up. Charging a price of zero will always result in excess demand, overuse, shortages, and poor quality.
Timothy M. Shaughnessy
Tim Shaughnessy is an associate professor of economics and finance in the College of Business at Louisiana State University in Shreveport. He received his PhD in Economics at Florida State University in 2003. His research generally focuses on public-choice issues, with a recent interest in the spatial effects on voting.
