Will someone please explain to the CITGO across the street that if the Wilco Charges $3.43/gal then if you change $3.50/gal (click on the picture and you can barely see the higher price), no one is going to buy your gas. Except me … I was traveling right to left along this road on Friday night and got $10 worth on my way home. I was running on fumes and didn't want to make two left turns on this four lane highway during rush hour. This picture was taken later that weekend when I filled the tank up.
Environmental Economics
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Posted in Demand and Supply
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So their pricing strategy worked!
I have a gas station that I pass every morning. It’s on the opposite side of a 4 lane rode from the morning rush hour traffic. In the afternoon, it is on the fortunate side of rush hour traffic. Gas is always 10 cents cheaper in the morning than in the afternoon. -
But I’m heading towards town at the end of the day (given that there is a mountain that I have to drive around)!
But I’ll check to see if the price varies by time of day. -
There’s a Seinfeld episode where Jerry’s crazy mechanic says 75% (or something like that) of all turns are right turns (I suppose I should have a better source for such a statistic, but that’s the one handy at the moment.) If that’s true, then, on average, gas stations on the RHS of the road should always have higher prices (because holding supply equal, demand is shifted out on the right) relative to those on the LHS.
Good observation or GREAT observation???
Or is the causation in the opposite direction, i.e., are more people turning right because gas is CHEAPER on the right, which would contradict the above hypothesis? Energy economics is hard. -
The price is back to $3.43.
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