Interesting People mailing list archives
more on and question more on gasoline price history
From: David Farber <dave () farber net>
Date: Wed, 31 Aug 2005 09:57:18 -0400
Begin forwarded message: From: Richard O'Brien <robrien () paymentpathways com> Date: August 31, 2005 9:13:38 AM EDT To: dave () farber net Subject: RE: [IP] and question more on gasoline price history Dave, A partial answer to your question: A proportional part of the gold isending up in the pockets of the largest credit-card issuing banks and the
largest payment processors. Why does our cost of transacting (chargestraditionally paid by merchants and passed on to consumers embedded in the street price) rise proportionally with the retail price of gasoline? Are transaction risks greater when commodoties such as gasoline are purchased?
Is this a glimpse of a bottleneck monopoly in practise? Safer and moreefficient payment systems will emerge and tip consumer behavior when today's
dominant payment infrastructure is understood to be a regressive tax on those who rely on transportation to earn a living.Who really pays for the 5% cash back on gasoline purchases recently offered by Discover Card this summer? The merchants? The other consumers who pay
for gas with other credit cards? Rick -----Original Message----- From: David Farber [mailto:dave () farber net] Sent: Tuesday, August 30, 2005 6:26 PM To: Ip Ip Subject: [IP] and question more on gasoline price history So where is the gold ending up with the rapid rise? Who is really making the gold. djf Begin forwarded message: From: Simon Higgs <simon () higgs com> Date: August 30, 2005 5:51:13 PM EDT To: dave () farber net Subject: Re: [IP] more on gasoline price history At 01:56 PM 8/30/2005, you wrote: There's another factor driving the retail gas prices at the pumps. In other parts of the country, prices are under the national average. However, there is no incentive whatsoever for any petroleum company to remain under the national average for any length of time. I have a reliable source from a discount gas retailer who informs me that their currently mandated retail practice is to blindly follow the national average while it increases. What this does in practice is to push the price of gas up from the bottom. Let's say that this chain charges $2.25, when CNN announces that the national average is $2.30. The chain will now put it's prices up to match the national average. Which, of course, pushes up the national average and the whole thing repeats as often as the market can bear it. I'll throw in another "factor". I would hypothesis (I have no real information to back this up other than a couple of road trips where I noticed this happening) that mainly republican areas have cheap gas and democratic areas have more expensive gas. Maybe overlaying the red/blue/purple election return maps over maps of retail gas prices will reveal something interesting for an anti-trust lawyer. Simon
Begin forwarded message: From: Jude Shavlik <shavlik () cs wisc edu> Date: August 30, 2005 1:06:26 PM EDT To: dave () farber net Subject: Re: [IP] gasoline price historyDespite the recent price rises of gasoline in the US, gas is still cheap if you consider inflationSince increases in the price of oil are a big driver of inflation, isn't it a bit circular and misleading to then adjust gas prices for inflation? Does anyone know what fraction of inflation over the last N years can be attributed to the price of oil? It would be interesting to see a constant-dollars plot of historical gas prices corrected for the impact of oil prices on inflation. Jude Shavlik Computer Sciences Dept Univ of Wisconsin - Madison ------------------------------------- You are subscribed as simon () higgs com To manage your subscription, go to http://v2.listbox.com/member/?listname=ip Archives at: http://www.interesting-people.org/archives/interesting- people/
Best Regards, Simon Higgs ------------------------------------- You are subscribed as robrien () paymentpathways com To manage your subscription, go to http://v2.listbox.com/member/?listname=ipArchives at: http://www.interesting-people.org/archives/interesting- people/
------------------------------------- You are subscribed as lists-ip () insecure org To manage your subscription, go to http://v2.listbox.com/member/?listname=ip Archives at: http://www.interesting-people.org/archives/interesting-people/
Current thread:
- more on and question more on gasoline price history David Farber (Aug 31)