Showing posts with label market share. Show all posts
Showing posts with label market share. Show all posts

Thursday, April 17, 2008

Why boycotting Gas Stations Won't Lower Prices




Believe me, I sympathize, but I've got to tell you - boycotting a gas station will not bring down the price of gas. Give me a few minutes to demonstrate why, as well as propose what we can do to lower gas prices (although it will not be a quick fix to remedy the current high price right now).

Why boycotting won't work
Picture an intersection that has two gas stations. We've all agreed to buy no gas for a set period of time (a particular day, weekend, week, month...doesn't matter). Company A owns x% market share, and it was being boycotted, people started buying their gas elsewhere, and the other companies would have to adjust their supply to meet all the new demand.