TOTM
Stop Blaming Rising Egg Prices on Market Power
Truth on the Market
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Egg prices are in the news again. Policy responses will likely follow. But not all policy responses make sense.
Commissioner Alvaro Bedoya of the Federal Trade Commission (FTC) recently highlighted empty egg shelves and skyrocketing prices, calling for an investigation into potential market manipulation. While his concerns about the egg industry’s supply chain deserve attention, basic economics suggest a simpler explanation may account for much of what we’re seeing.