Preisobergrenze

What Is Preisobergrenze?

A Preisobergrenze (price ceiling) is a government-imposed maximum legal price that can be charged for a specific good or service within a market. As a concept within Mikroökonomie (microeconomics), a Preisobergrenze is a form of staatliche Eingriffe (government intervention) designed to protect consumers by making essential goods more affordable. When a Preisobergrenze is set below the natural Marktgleichgewicht (market equilibrium) price—the point where Angebot (supply) meets Nachfrage (demand)—it becomes "binding" or "effective." An effective Preisobergrenze prevents the market price from rising to its equilibrium level, typically leading to a Mangel (shortage) of the good or service.

History and Origin

The concept and implementation of price controls, including what we now understand as a Preisobergrenze, date back centuries, with various governments intervening in markets during times of crisis or perceived unfair pricing. Ancient civilizations, such as the Roman Empire, attempted to control prices on essential goods like grain. More recently, in the United States, significant price controls were implemented during wartime periods, such as World War II and the Korean War. A notable modern example occurred in August 1971 when President Richard Nixon imposed a 90-day freeze on wages and prices across the U.S. economy, as part of an effort to combat rising Inflation. PBS Commanding Heights documents this pivotal moment, highlighting how this broad intervention aimed to stabilize the economy but ultimately faced significant challenges upon its removal.

Key Takeaways

• A Preisobergrenze is a legally mandated maximum price for a good or service.
• It is set below the market equilibrium price to be effective, aiming to increase affordability for consumers.
• Binding price ceilings often lead to shortages because the quantity demanded exceeds the quantity supplied at the controlled price.
• They can result in decreased product quality and the emergence of Schwarzmarkt (black markets).
• While offering short-term consumer benefits, Preisobergrenzen frequently have negative long-term consequences for overall Wirtschaftliche Effizienz.

Formula and Calculation

A Preisobergrenze itself is not calculated using a specific formula but rather represents a fixed value imposed by an authority. Its effects on the market, however, can be understood by comparing the quantity demanded and quantity supplied at the set price ceiling.

If:

• ( P_{PC} ) = Preisobergrenze (Price Ceiling)
• ( P_{EQ} ) = Equilibrium Price (Preisgleichgewicht)
• ( Q_D ) = Quantity Demanded at ( P_{PC} )
• ( Q_S ) = Quantity Supplied at ( P_{PC} )

For a Preisobergrenze to be binding and thus have an effect on the market, it must be set below the equilibrium price:
$P_{PC} < P_{EQ}$

When a binding Preisobergrenze is in place, a Mangel (shortage) occurs, calculated as:
$\text{Shortage} = Q_D - Q_S$
In this scenario, ( Q_D ) will be greater than ( Q_S ). The values for ( Q_D ) and ( Q_S ) are derived from the respective Nachfragekurve (demand curve) and Angebotskurve (supply curve) at the imposed price ceiling.

Interpreting the Preisobergrenze

The interpretation of a Preisobergrenze revolves around its impact on market dynamics. When a Preisobergrenze is set, it signals an intent to make a good or service more accessible. If the ceiling is above the Marktgleichgewicht price, it is non-binding and has no effect, as the market naturally operates below it. However, if the Preisobergrenze is set below the equilibrium, it creates a disequilibrium where buyers want more of the good than sellers are willing to provide at that lower price. This leads to a persistent Mangel.

The magnitude of this shortage depends on the elasticity of both Angebot and Nachfrage. A greater difference between the equilibrium price and the Preisobergrenze, or more elastic supply and demand curves, will result in a larger shortage. This often leads to non-price rationing mechanisms, such as long queues, favoritism, or the development of alternative, often illegal, markets.

Hypothetical Example

Consider a local housing market where the equilibrium monthly rent for a standard apartment is €1,000, with 500 units supplied and demanded at this price. Due to concerns about affordability, the municipal government imposes a Preisobergrenze of €700 per month.

1. Before Price Ceiling: At €1,000, the market is in Marktgleichgewicht with 500 apartments rented.
2. After Preisobergrenze:
   • At €700, landlords find it less profitable to rent out apartments, or to maintain them to the same standard. Assume the Angebot of apartments falls to 300 units.
   • At €700, more people are willing and able to rent apartments due to the lower price. Assume the Nachfrage for apartments rises to 700 units.
3. Resulting Shortage: There is a shortage of 400 apartments (700 demanded - 300 supplied).
   • While some tenants will secure an apartment at the lower price of €700 (those who are lucky enough to find one), many others will be unable to find housing at all within the regulated market. This shortage can lead to increased competition for available units, reduced quality of existing units (as landlords have less incentive to invest), and potentially the rise of a Schwarzmarkt for housing.

Practical Applications

Preisobergrenzen are primarily seen in sectors where governments aim to control the cost of essential goods or services deemed vital for public welfare.

• Rent Control: Perhaps the most common and widely debated application, rent control laws impose a Preisobergrenze on residential rents in certain cities or regions. This is intended to make housing more affordable and prevent tenant displacement. However, studies show that while tenants in controlled units may benefit, rent control can lead to a decrease in the overall supply of rental housing, reduced maintenance by landlords, and higher rents in the uncontrolled housing market. D.C. Policy Center provides research on these impacts, noting both rent reductions in controlled units and negative effects on housing supply.
• Essential Goods during Crises: Governments may impose price ceilings on necessities like food, water, or medical supplies during emergencies, natural disasters, or public health crises to prevent "price gouging" and ensure widespread access.
• Utility Rates: In many jurisdictions, the prices charged by public utilities (e.g., electricity, water, natural gas) are regulated by government bodies, effectively setting a Preisobergrenze to ensure affordability and prevent monopolies from exploiting consumers. These Preiskontrollen are often justified by the natural monopoly characteristics of these industries.

Limitations and Criticisms

Despite their consumer-protection intentions, Preisobergrenzen are often criticized by economists for their unintended negative consequences, primarily a reduction in overall Wirtschaftliche Effizienz.

• Shortages: The most direct effect is a Mangel of the good or service, as the quantity supplied decreases and quantity demanded increases at the artificially low price. This means that while some consumers pay less, many others cannot obtain the good at all.
• Reduced Quality: With lower potential revenues, producers have less incentive to invest in maintenance, innovation, or quality improvements. Over time, this can lead to a deterioration in the quality of the controlled good or service.
• Black Markets: When goods are scarce at the legal price, a Schwarzmarkt often emerges where goods are sold illegally at prices above the Preisobergrenze, sometimes even exceeding the original equilibrium price.
• Misallocation of Resources: Price ceilings prevent prices from acting as signals that guide resources to their most valued uses, leading to Wohlfahrtsverlust (deadweight loss) and a reduction in Allokative Effizienz. This means society loses out on potential gains from trade. The American Action Forum discusses these economic drawbacks, stating that price ceilings "fail to tame inflation while reducing overall consumer welfare."
• Inefficient Rationing: Instead of price, other non-price factors become dominant for rationing scarce goods, such as waiting in lines, personal connections, or discriminatory practices by sellers.

Preisobergrenze vs. Preisuntergrenze

While both are forms of Preiskontrollen (price controls) imposed by governments, a Preisobergrenze (price ceiling) and a Preisuntergrenze (price floor) operate in opposing directions and have different intended effects and consequences.

The confusion between the two often arises because both involve government intervention in setting prices. However, their goals and the types of market imbalances they create are fundamentally opposite. As Khan Academy explains, a price ceiling prevents prices from rising, while a price floor prevents them from falling.

FAQs

Wha¹t is the primary goal of implementing a Preisobergrenze?

The main objective of a Preisobergrenze is to protect consumers by making certain goods or services more affordable, especially those deemed essential, such as housing or medicine. It aims to ensure accessibility and prevent excessive pricing.

Why do Preisobergrenzen often lead to shortages?

A Preisobergrenze leads to a Mangel (shortage) when it is set below the natural market price. At this lower price, the quantity that consumers Nachfrage (demand) increases, while the quantity that producers are willing to Angebot (supply) decreases, creating an imbalance where demand outstrips supply.

Can a Preisobergrenze improve economic efficiency?

Generally, no. Economists widely agree that binding Preisobergrenzen reduce Wirtschaftliche Effizienz by distorting market signals. They lead to Wohlfahrtsverlust (deadweight loss), meaning a net loss of total surplus (consumer and producer surplus combined) for society, as resources are not allocated optimally.

Are Preisobergrenzen always effective in lowering prices for everyone?

A Preisobergrenze can effectively lower prices for those consumers who manage to purchase the good or service at the controlled price. However, because they often cause shortages, not everyone who wants the good at that price will be able to get it. This means some consumers are helped, but others may be worse off if they cannot find the product or have to resort to a Schwarzmarkt.

What is the difference between a Preisobergrenze and price gouging laws?

While related, a Preisobergrenze is a general regulatory tool that sets a maximum price, often in stable market conditions, to promote affordability. Price gouging laws, on the other hand, are specific regulations that prohibit sellers from raising prices excessively on essential goods during emergencies or times of crisis (e.g., after a natural disaster), specifically targeting opportunistic pricing practices. Both aim to control prices for consumer benefit but differ in scope and context.