637 B
637 B
Forestalling
Definition
The practice of buying goods before they reach the market, particularly corn, with the intent to resell at a higher price, historically prohibited by law as a form of market manipulation.
Source Chapter
Book IV, Chapter 5
Context
Smith argues that forestalling prohibitions are misguided, as merchants who buy early are often providing a valuable service by anticipating future scarcity and helping to distribute goods more efficiently.
Economic Domain
Exchange