Great example of a minimum price

When teaching minimum prices, I tend to use examples from agriculture that don’t actually exist anymore so this short video clip on minimum pricing in the Nashville transport market will be a welcome addition.

It also gives another angle to the issues surrounding a minimum price - which usually involve producers having to deal with a surplus and / or the government purchasing the surplus. In this case, it is argued that it is being done to stifle competition in the limo market - the high end limo companies have managed to convince local authorities of the merits of the minimum price but this is to the detriment of other businesses who want to compete. Lawsuits have been filed (it is the USA after all) to try and stop this “cartel” of limo companies from getting their own way by having these anti-competitive policies repealed.

The youtube video can be found here and the page also includes a summary of the regulations that have been introduced in the name of “public safety”.