Concept: rationing mechanisms

A rationing mechanism is a system for choosing who gets how many goods during a shortage. Long lines are often used to ration goods in shortage (so the good is distributed on a first-come, first-serve basis). In addition, black markets often develop as a way of rationing goods that are in shortage.


The Apartment icon

The Apartment

price ceiling | rationing mechanisms

The Chinese Restaurant icon

The Chinese Restaurant

opportunity cost | rationing mechanisms

The Chinese Restaurant icon

The Chinese Restaurant

efficiency | rationing mechanisms

The Pony Remark icon

The Pony Remark

price ceiling | rationing mechanisms