This paper introduces, summarizes and analyzes Armen Alchian's article on what we should do during gasoline
shortages. The
paper explains that the premise of Alchian's article is that rationing and
governmental control of gasoline are not successful solutions. Rather, the paper explains, Archian argues that rationing and governmental control are counter-productive and that free market economics are all that is needed to regulate the price of gasoline in the best way. The paper goes on to further delineate Alchian's position on what should be done during gasoline
shortages and concludes that the arguments Alchian presents in his article are based on logic, theory and solid economic reasoning.