Today’s Economics Puzzle

TMI a little place to whine: How come…?:

At the corner of 107 and Quail Roost Rd. when 107 become Marlin Dr. There is a U-gas station, where I purchased unleaded regular gas for $3.05 a gallon today.

In South Miami, just before the main shopping dictrict, there is Chevron gas station that has unleaded regular gas for $3.64 a gallon.

Most gas stations are averaging $3.16 a gallon.

Locational utility, imperfect information, or Walrasian tatonnement in slow motion?

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4 Responses to Today’s Economics Puzzle

  1. arthur says:

    I don’t know Miami neighborhoods, but most gas stations buy by the tanker truck, and mark up whatever they pay. When prices are rising (or falling) very quickly, the price may be extremely different depending on whether the last tanker arrived yesterday or today.

  2. Michael says:

    I guess that would explain why the place where I got gas this morning for $3.08 was selling it for $3.25 this afternoon….

  3. Mojo says:

    Another piece of the puzzle might be brand premium. Around here, national brands sell gas for an extra ten to twenty cents over the local stations (some of which sell the national brands’ gas). And some stations (around here it’s Shell) sell for even higher because of gas credit card sales. People with horrible credit can still get gas company credit cards so they’re locked into that brand. (Plus there are an amazing number of stupid people who buy a particular brand to get the discount or rebate for using that company’s card and ignore the fact that the end price is still higher.)

  4. Sue Ann says:

    Yesterday (3/22) the Chevron went “down” to $3.39 and the cheap place went up to $3.21.

    Next week I am going to try taking public transportation to work. I am begining to think that $15 a week in tokens is better than $15 every other day to put gas in a tank.

    Ya’ know those stupid “let’s not buy gas today” campaigns? I think it would be better if we all had a “let’s not drive our cars to work” day. Let’s screw the gas companies, show cities we need more public transportation and show the economy that a productive work force needs a reliable transportation service that we can actually AFFORD.

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