What is price gouging?

Florida's first use of anti-price gouging laws has been used in the wake of Hurricane Katrina by, would be governor, Charlie Crist. This got me thinking about what exactly price gouging is...

I don't want to bore anyone with the economics (and I don't have the visual aids to properly demonstrate) but price gouging is essentially a non-monopoly company taking advantage of circumstances that create temporary monopoly-like conditions. Typically, companies will price their products to maximize profits. They also, typically, face some kind of competition. In the case of gas stations it's the guy across the street or down the road.

When Katrina happened the supply of gasoline was artificially restricted. This created some actual monopolies (gas stations that were one of only a handful in an area to have gas) and some monopoly like conditions (gas stations that were located to take advantage of people's desire to be "safe rather than sorry"). While the price gouging laws are nebulous, tough to enforce and small in dollar amount, the Sherman Anti-Trust act (and it's antecedants) provides for tougher penalties, including triple damages. Additionally, it's generally easier to prove since all you have to show is that the company was in a monopoly position and pricing accordingly.