Market Effects on Prices
Market Effects are the result of changes in the local incentive structures and patterns of opportunity caused by the introduction of new resources. The new resources noticeably affect incomes, wages, profits, and prices so that people’s perception of economic winners and losers changes.
Prices
Interventions that require local goods and/or services can drive the prices of these up, placing them out of the reach of locals who are used to relying on them, or changing incentives around those items.
When prices for necessary goods such as housing or food rise, tensions rise as well. At the same time, when some people are seen to be doing quite well—landlords, for example, who rent to outsiders—this can increase resentment and Dividers across groups.
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Related Topics
Market Effects on Incomes
Market Effects on Wages
Market Effects
Using Market Effects
Resource Transfers
Critical Detail: Resources—What do we provide?
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