Did you fill your tank?

The only time the gov't should get involved is if they believe that there is collusion amongst the gas stations to raise the prices. If all the gas stations even tacitly agreed to do this, the govt should step in. I don't believe they are colluding, as most gas stations did not follow the lead and raise prices.

[WWSituation]

The other issue raised is did the oil companies coolude to have prices where they are now, independent of this event? And can it be proven?

NY rental costs are going to sky rocket due to the temporarily displaced thousands of employees and companies. Is this Price gouging or S&D??

[42]

My two cents:

It was morally reprehensible, but not illegal. The General Public's reaction to these stations in the near future will determine whether or not it was a good business decision to piss the GP off like that. I suspect that the GP will show it was a very bad decision.

I expect the loyalty to NYC issue will no longer be the tight string keeping corporate leaders from moving headquarters closer to their homes, outside the city.

There will also now be a followup consideration of London's proposal to make all markets electronic, imo.

[The Mister]

On 2001-09-13 10:34, Anonymous wrote:
NY rental costs are going to sky rocket...

<font size=2>Haven't they already? Like, for the last N years?

[G. Ringo]

Did the gas station owners know more about the supply than their customers? I'd define price-gouging as basing prices on asymmetric information.

GG: good definition. Maybe another definition of price gouging would be large-scale increases in margin due to irrational fears or expectations.

Would you consider this to be price-gouging:

Gas station pays $0.85 for a gallon, their standard expense and profit margin is $0.75, they usually charge $1.60.

OPEC announces they'll raise prices such that the station's cost will go up from $0.85 to $1.85, effective in 2 weeks. It will be effective in 2 weeks for all stations.

The station raises prices to $2.60 immediately.


I would, because the price has nothing to do with the cost or the current supply. I don't think anyone has a problem with someone making a realistic profit on a product, but unrealistic margins (making a fortune off the misery of others) are not acceptable.

I think the government agrees with this.

"There is no point in continuing this. This is typical."

Indeed. This is Traci's way of saying "You are right and I am wrong." Happens in every thread she participates in.

Moving on, here is a point to think about:

Suppose the gas station owner paid $1.50 a gallon and filled his station tanks Monday night - they are full. Tuesday comes, panic sets in, prices go up, the guy down the street fills his supply tanks up for $5.00 a gallon. On Friday, the first guy refills his supply tanks, now at $6.00 a gallon. The panic eases, and on Saturday the second station owner refills for $1.50 a gallon. Meanwhile, our friend at the first station is stuck with a very large supply of $6.00 gas.

It just isn't clear to me what Traci would do to help the guy stuck with the $6.00 gas.

Another point about supply and demand is this: People were PAYING $5.00 per gallon for gas. Intermittent spikes in at-the-pump gas prices in the past several years make it clear that the DEMAND for gas will support a fair amount of consumption at prices considerably higher than have prevailed. However, the supply has apparently and consistently been greater than the demand, resulting in prices in the $1.50 - $2.00 level.

[Dr T Non-Fan]

Yo, T: try not to rationalize your emotions, or to call the lawyers when you're angry.
Good for you to admit that you were flying off the handle, and that your hysteria was probably just one of those woman things.

That's where you got into trouble here: using fancy words that were inappropriate to your venting.

More proper reaction: "I can't believe anyone would pay for gas at those prices, when other stations are still at near yesterday's prices. What idiots!"
Or: "So they wait in line to fill their tank today, knowing in a few days(/a week/slightly more) they'll have to buy again. As if this is a four-day crisis, and that's all the gas they'll need? What idiots! It's either a long-term problem, in which case you're out of gas a few days later than others, or it's a one-day deal, in which tomorrow there will be more gas. Honestly, the average intelligence of the American people! So glad I'm so much smarter."