Showing posts with label price. Show all posts
Showing posts with label price. 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.