Famed New Orleans chef Susan Spicer is suing BP on behalf of at least seven restaurant owners and seafood suppliers, claiming that the Gulf oil spill has damaged their businesses.
“I’m proud to be part of a resilient community,” she said. “I also feel strongly that [BP] needs to be held accountable for its negligence.”
How much should restaurants get in damages from BP? Look below the jump for my simple analysis...
Noting that the final welfare loss depends on the relative slopes of supply and demand and the relative magnitudes of the shift in supply and demand due to closure of Gulf fishing areas and the public reaction to seafood safety concerns, and further noting that some restaurants may actually benefit from the increase in price that results from the supply decrease, consumers should ask for $BCDEF and restaurants should ask for $HIJ-D.
