suntimes.com— The owners of an E85 gas station wanted to cut the price to $2, but said they had to artificially hike prices after some competitors complained Badger wasn't meeting the state's minimum markup laws.
Aug 9, 2006View in Crawl 4
It still might be good legislation.What if a large store chain(like say Walmart or something like that) first undercut the competition then raised prices when they were the largest suppliers or when there was no competition. They would not just stop at the normal price thay would definitely over charge. The law just has to be changed a little.Any way, that's not ware the problem is. The problem is not with the gas stations.The problem is with the oil industry with there price fixing. They are making more profit now then ever the whole world over. But they say they need to raise the price.6% of a good price is is ok. But 6% of a very large unfair price is harder to take.Between the insurance and oil and world banking industry, we all get riped off.Thay are all biger than any government in the world.
So if E85 is available wholesale for under $2, where are all the E85 fuel stations? Synthetic fuel is even lower, under a buck/gallon to produce.How much does it take to open a gas station to sell these fuels @ $2/gal to a nearly bankrupt society? Where's the boom?Best I can tell, ethanol and synfuel production both are getting attention in every state in the country. Supply/Distribution shouldn't be much of an issue if it's being produced right there in your state. So let's get on the stick people, open some alternative fuel gas stations, hook up with the production upstarts and work out some distribution schemes and get the consumers some relief pronto. You'll get rich in the process and drive big oil out of town.How much does it take to open a gas station?
predatory pricing and learning curves. * John S. McGee, "Predatory Price Cutting: The Standard Oil (N.J.) Case," Journal of Law and Economics 1: 137-169 (October 1958). * Lester G. Telser, "Cutthroat Competition and the Long Purse," Journal of Law and Economics 9: 259-277 (October 1966). * John S. McGee, "Predatory Pricing Revisited," Journal of Law and Economics 23: 289-300 (October 1980). * Malcolm R. Burns, "Predatory Pricing and the Acquisition Cost of Competitors," Journal of Political Economy 94: 266-296 (April 1986). (JStor.) * Alvin K. Klevorick, "The Current State of the Law and Economics of Predatory Pricing," American Economic Review 83(2): 162-67 (May 1993). * Andrew R. Dick. "Learning by Doing and Dumping in the Semiconductor Industry," Journal of Law and Economics 34(1): 133-59 (April 1991).taken from <a class="user" href="http://web.uconn.edu/langlois/E381SYL.HTML">http://web.uconn.edu/langlois/E381SYL.HTML</a> (not my class, but still should be helpful)
And customers are *completely* prevented from driving two more blocks down the street, or heaven forbid, to the next interstate exit, and are completely beholden to the *eeeevil* gas station owner.And macrat: (guess you haven't noticed the decline of independant gas stations due to the "free market" eh?) Actually, you'd be hard pressed to find a refining or oil producing company owned gas station, besides the ones outside Sam's Club (Murphys) which actually refine their own gasoline. You are confusing ownership with "branding."
You know why ethanol costs just as much or more as gasoline on the wholesale market? Because of government imposed price floors on corn. Do us a favor, but do it where most people don't see it, but where it has large effect like that.
Never happened?Ever heard of the "Railroad game" where the owner of the railroad (with multiple markets) would lower ticket prices in a competitive market and raise them in a non-competitive market to kill his competition?Ever heard of the "Robber Barons" of American history?Get a book and educate yourself, or go on wikipedia...
Closed AccountAug 10, 2006
Capitalism at its finest
rampage3000Aug 10, 2006
It still might be good legislation.What if a large store chain(like say Walmart or something like that) first undercut the competition then raised prices when they were the largest suppliers or when there was no competition. They would not just stop at the normal price thay would definitely over charge. The law just has to be changed a little.Any way, that's not ware the problem is. The problem is not with the gas stations.The problem is with the oil industry with there price fixing. They are making more profit now then ever the whole world over. But they say they need to raise the price.6% of a good price is is ok. But 6% of a very large unfair price is harder to take.Between the insurance and oil and world banking industry, we all get riped off.Thay are all biger than any government in the world.
excorneliusAug 10, 2006
W00t indeed.
greatdayAug 10, 2006
So if E85 is available wholesale for under $2, where are all the E85 fuel stations? Synthetic fuel is even lower, under a buck/gallon to produce.How much does it take to open a gas station to sell these fuels @ $2/gal to a nearly bankrupt society? Where's the boom?Best I can tell, ethanol and synfuel production both are getting attention in every state in the country. Supply/Distribution shouldn't be much of an issue if it's being produced right there in your state. So let's get on the stick people, open some alternative fuel gas stations, hook up with the production upstarts and work out some distribution schemes and get the consumers some relief pronto. You'll get rich in the process and drive big oil out of town.How much does it take to open a gas station?
hbombAug 10, 2006
predatory pricing and learning curves. * John S. McGee, "Predatory Price Cutting: The Standard Oil (N.J.) Case," Journal of Law and Economics 1: 137-169 (October 1958). * Lester G. Telser, "Cutthroat Competition and the Long Purse," Journal of Law and Economics 9: 259-277 (October 1966). * John S. McGee, "Predatory Pricing Revisited," Journal of Law and Economics 23: 289-300 (October 1980). * Malcolm R. Burns, "Predatory Pricing and the Acquisition Cost of Competitors," Journal of Political Economy 94: 266-296 (April 1986). (JStor.) * Alvin K. Klevorick, "The Current State of the Law and Economics of Predatory Pricing," American Economic Review 83(2): 162-67 (May 1993). * Andrew R. Dick. "Learning by Doing and Dumping in the Semiconductor Industry," Journal of Law and Economics 34(1): 133-59 (April 1991).taken from <a class="user" href="http://web.uconn.edu/langlois/E381SYL.HTML">http://web.uconn.edu/langlois/E381SYL.HTML</a> (not my class, but still should be helpful)
nonlegAug 10, 2006
And customers are *completely* prevented from driving two more blocks down the street, or heaven forbid, to the next interstate exit, and are completely beholden to the *eeeevil* gas station owner.And macrat: (guess you haven't noticed the decline of independant gas stations due to the "free market" eh?) Actually, you'd be hard pressed to find a refining or oil producing company owned gas station, besides the ones outside Sam's Club (Murphys) which actually refine their own gasoline. You are confusing ownership with "branding."
nonlegAug 10, 2006
You know why ethanol costs just as much or more as gasoline on the wholesale market? Because of government imposed price floors on corn. Do us a favor, but do it where most people don't see it, but where it has large effect like that.
greatdayAug 11, 2006
@nonlegWRONG. According to this article, gasoline costs $2.20/gal to produce, ethanol=$1/gal, methanol=$0.76/gal. And CORN is not the end all be all for ethanol. Any feedstock with high sugar content (sugar beets, sugar cane, potatos, even grasses) can be used. Those feedstocks have no artificial floor.<a class="user" href="http://www.cbsnews.com/stories/2006/08/01/tech/main1856361.shtml">http://www.cbsnews.com/stories/2006/08/01/tech/main1856361.shtml</a>
asoeAug 11, 2006
They were rhetorical questions.
hmtksteveAug 14, 2006
Never happened?Ever heard of the "Railroad game" where the owner of the railroad (with multiple markets) would lower ticket prices in a competitive market and raise them in a non-competitive market to kill his competition?Ever heard of the "Robber Barons" of American history?Get a book and educate yourself, or go on wikipedia...