Price Gouging Does Not Happen in Japan While price gouging almost always occurs in the aftermath of a natural disaster, it was not observed after the earthquake, tsunami, and nuclear fallout in Japan in 2011. According to Thomas Lipson, a former professor of East Asian studies at Harvard, this behavior didn’t occur in Japan because of the country’s moral values—strong community spirit, cultural views of shame, and a fear of consequences, such as boycotting of stores that practice price gouging.

a. What is price gouging and why does it usually occur after a natural disaster?
b. Why do you think price gouging is viewed negatively in Japan? Is it fair to demand higher prices when consumers need the products the most?

c. From the news clip, do you think Japan needs laws against price gouging?