Discussion in 'Economics' started by DramaQueen, Nov 23, 2005.
What do u think about it?
what do YOU think about it?
Are you kidding me?
*I have to write an essay about itâ¦.
What do I think about it?
Well, zone pricing is a practice under which refiners sell gasoline to retailers at wholesale prices that differ across geographic areas. Seems like price discrimination to me.
Tell you the truth, I opened this thread only in order to find out other peopleâs perspective on this matter. My essay topic is on Gasoline Zone Pricing Policies. Is there any policies that you know, and that Iâm an aware of?
Wholesalers should charge whatever the market will bring. If a nationwide gasoline wholesaler has stiffer competition in one region due to competition from a regional wholesaler, they should feel free to compete with better prices in that region. By no means does that obligate them to reduce prices nationwide. If you think prices are unfairly high, then you have the option of a) not buying the gasoline, and/or b) opening up your own gasoline wholesale business. Should you decide that both of these options are too inconvenient, then you know what you are paying that wholesaler for: convenience. Everyone knows convenience stores charge a premium.
Did someone forgot to take ECO 101?
They charge whatever people want to pay. Basic supply/demand.
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