Economists would generally argue that price is the right way (although with caveats, pure price allocation of drinking water in a drought might raise hackles) to do that rationing.
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Price rationing provides efficient allocation of our great gifts of nature in a system of conservation that any environmentalist should adore.
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As you noted, price fluctuations occur in the European cap-and-trade system because the initial allocation of credits was too generous, rather than any inherent price volatility in carbon markets.
Just as conventional inflation can distort the allocation of resources, so asset-price inflation distorts economic behaviour by causing households to save too little and to pour too much money into property.
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Why, that would be all those speculators, driven purely by their own greed and desire for lucre, producing the price signals that lead to this resource allocation.
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"For almost 10 years, the cartelists carried out the most harmful anti-competitive practices, including price fixing, market sharing, customer allocation, capacity and output coordination and exchanges of commercial sensitive information", the commission said.
The emphasis on regulatory capital adequacy has short-changed economic capital, capital allocation and might hamper efforts to use capital efficiently to price risk, Chartis reported.
Rowe Price suggests investors in their 80s should still consider a 40% allocation to stocks.
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Sokalsky said share prices of producers have lagged the price of gold itself in recent years, with investors dissatisfied with capital-allocation decisions throughout the industry.
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The combination of state-led investment decisions in the emerging world and a parochial focus on price stability in the rich world produced serial asset bubbles rather than efficient capital allocation.
This method of IPO allocation can create an instant windfall for insiders by encapsulating as much market demand into the offering price as possible.
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