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2007-06-21
Gas Price Discrimination
In this Internet era, you would think that price discrimination based on location is much less effective. Think again.
On my way home from work, there are two 76 gas stations about two blocks away from each other but with unbelievable price difference. For regular gas, one sells at $3.93 and the other one $3.23. That's more than 20% difference. Yet they seemed to be equally busy.
Why would people still go to the more expensive one?
On my way home from work, there are two 76 gas stations about two blocks away from each other but with unbelievable price difference. For regular gas, one sells at $3.93 and the other one $3.23. That's more than 20% difference. Yet they seemed to be equally busy.
Why would people still go to the more expensive one?
