Market Capitalism 101

[brooklynite]

Driving down to DC (in Maryland) I stopped at a 7-Wlecen selling gas for $2.99 a gallon. Immediately adjacent was… a 7-Eleven selling gas for $3.33 a gallon.

What can we learn from this?

Link to tweet

[JI7]

1. Same owners ?

[unblock]

6. Lol I thought the same thing.

There are legit reasons for such price differences, but yeah, one possibility is one is just way overpriced a d the other is the illusory "sale" price.

[Tomconroy]

2. Call me crazy

But I'm going with 2.99.

[Bristlecone]

3. I'd guess one of them will be updating their sign soon.

We’re those stories on opposites sides of a large partitioned road?

Growing up in Phoenix, often there would be a “Circle K” on 2 or 3 corners of a busy intersection.


*iphone typo

[VarryOn]

4. If the higher priced one allowed me a right-hand turn on a busy street when I leave...

It might be worth it. Or maybe it's newer or cleaner. Lots of things would factor into my decision over which to use. That's one of the pros of capitislm--I, as the consumer, get to choose where I spend my money...on most things.

Every decision is about trade-offs. Econ 101.

[unblock]

5. There are a couple gas stations like that along my commute

One allows an easy entrance on the right side of the popular commuting route and a different easy exit back on.

The other, you have to go past a very busy intersection, and when done, make a left turn that's impossible during rush hour, or a right and a u-turn via some commercial lot, then a left through that busy intersection.

The easy access station always charges about $0.20 more. Interestingly enough, even when it's not rush hour and it's no big deal to go to the cheaper station. I guess people get into a habit.

[VarryOn]

7. My dad (74 yo) is always asking me what I'm paying for gas...

And I never know. I'm more concerned about the convenience, and I can never tell him the cost per gallon . I fill up every time. I know that's not the same for many, these days. I'm very blessed.

[onethatcares]

8. he's probably wondering

what happened to the gas wars of the 60s and early 70s. Nowadays, every gas company charges the same. I've wondered if they're colluding. or price fixing.