allocative efficiency. Allocative efficiency holds that when prices function properly, markets tend to allocate resources to their most valued uses. In turn, those who value the good the most and are able to afford it will pay a higher price than those who do not value the good as much or who are unable to afford it. According to Friedrich Hayek in "The Use of Knowledge in Society", prices can act to coordinate the separate actions of different people as they seek to satisfy their desires. Economists such as Thomas Sowell (Chicago School of economics), Donald J. Boudreaux (Austrian School and public choice), and Raymond Niles (Senior Fellow at the American Institute for Economic Research) argue that laws prohibiting price gouging dramatically worsen emergencies for both buyers and sellers. See also Extortion Hoarding (economics) Just price Monopoly Price fixing Sherman Antitrust Act Ticket resale Unintended consequences References External links Florida Attorney General FAQ Concerning Price Gouging Condemning Price Gouging with Respect to Motor Fuels Following Terrorist Acts of September 11, 2001 in the Congressional Record Pricing Commercial crimes