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  • 2005-08-29 (xsd:date)
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  • Selective Gasoline Boycott (en)
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  • Examples: This year's litany of complaints about gasoline prices is a re-run of the same program from years past: Gasoline prices in the USA are too high; gasoline is a unique commodity whose price isn't subject to the usual market forces of supply and demand; OPEC and greedy American oil companies secretly manipulate the market to keep prices artificially high; and a simple boycott of a couple of brands of gasoline will rectify all this. Oil companies can manipulate their prices somewhat by controlling how much gasoline they produce and where they sell it, but they can't alter the basics of supply and demand: prices go down when people buy less of a good, prices go up when people buy more of a good, and prices go way up when demand outstrips available supply. The gas out schemes that propose to alter the demand side of the equation by shunning one or two specific brands of gasoline for a while won't work, however, because they're based on the misconception that an oil company's only outlet for gasoline is its own branded service stations. That isn't the case: gasoline is a fungible commodity, so if one oil company's product isn't being bought up in one particular market or outlet, it will simply sell its output to (or through) other outlets: A boycott of a couple of brands of gasoline won't result in lower overall prices. Prices at all the non-boycotted outlets would rise due to the temporarily limited supply and increased demand, making the original prices look cheap by comparison. The shunned outlets could then make a killing by offering gasoline at its normal (i.e., pre-boycott) price or by selling off their output to the non-boycotted companies, who will need the extra supply to meet demand. The only person who really gets hurt in this proposed scheme is the service station operator, who has almost no control over the price of gasoline. The only practical way of reducing gasoline prices is through the straightforward means of buying less gasoline, not through a simple and painless scheme of just shifting where we buy it. The inconvenience of driving less is a hardship too many people apparently aren't willing to endure, however. (en)
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