Reposted by Laye Kangaye
The LA wildfires have given landlords an opportunity to raise rents. California has anti-price-gouging regulation that might prevent that.
If you want to step beyond Econ 101, here’s a recent Econometrica paper that shows how price caps can raise welfare.
onlinelibrary.wiley.com/doi/abs/10.3...
onlinelibrary.wiley.com
Econometrica | Econometric Society Journal | Wiley Online Library
Policymakers frequently use price regulations as a response to inequality in the markets they control. In this paper, we examine the optimal structure of such policies from the perspective of mechani...