Rent Control and Outcomes of Price Ceiling ( November 30th, 2011 )

Price Control leads to less apartments that are available.
The problem with that is that there is more of a demand for apartments.

• There is a shortage of apartments and thus more of them have to either be built with allocated resources from sellers or sell them at a higher price in order to catch the surplus of apartments and meet the margin of supply and demand.

The outcomes of price ceilings is to reduce the availability of apartments and make them harder to  acquire. So they either had to lower the quality to make them affordable for others or try to fix it so that it would be dealt with at a regular price to the public.

• The black market emerged and bribes were created because of it. People had bids in order to jeopardize the way to obtain apartments, especially in New York City.

• The problem with that was the rise of mid-allocation. Other neighborhoods that were not controller were effected by this.

Fairness and rights played a strong role in the distribution of selling the apartments. Discrimination was also a strong role, where it provided a social goods to others. It made other apartments available and less people were available from the market due to that.
There was however in need of monitoring and enforcement, which costs money and was bad for society as a whole. Yet it was not available at the time because monitoring would cost money and it would be bad for society a whole.

Reminds me of the article where students worked together to find out where they would live on campus (this was last week's article).