Price Ceilings of $0

Source: American Institute for Economic Research
by Donald J Boudreaux

“In my previous two columns I reviewed the basic economics of price ceilings and price floors. In this column, the third in this series, I’ll look at a relatively rare set of goods and services that are best analyzed economically as goods and services that are exchanged in markets in which government sets a price ceiling of $0. … These goods and services can legally be given away and accepted as gifts, but — in most jurisdictions — they cannot be sold for, or paid for, with money. Examples include parental rights in infant children, consensual sex among adults, and transplantable body organs.” (08/02/22)