@davidbrown9390
But why go to the more expensive one when they’re next door? I always go to the cheaper one.
@bashiirmuuminxassan223
The explanation of elaciticy is correct, but the example you used doesn't correlate to it. If the two gas stations had the same expensive price and the people still buy it, the elaciticy theory will apply. Here maybe the explanation would be that the people have preference or incentives that you didn't mention.
@aldoyck7665
In San Francisco, some franchise gas stations apply a surge charge of $1 or more for credit card payments, whereas non-franchise stations don't charge this fee, although their gas prices per gallon tend to be higher.
@jackengele2144
Okay so this is a great example of 2 stations a few blocks apart from each other. Not close enough where you could push your car to the other pump with little effort. This specific instance is likely more to do with branding, loyalty rewards, goods for sale inside, and services offered other than fuel pumps.
@ismailtopa3671
I like the part when you explain why people go for the more expensive gas station
@Dk-qf8dd
I go to the one with the better grade of gas. Additives, cleaners, ethanol y/n…. Especially with a high performance twin turbo 😊
@cgomez777
Also, those gas stations are in a tourist area. That's the Marina district. Close to the pier, which raises the price. Difference from if you go to Bayview where the Chevron on 3rd and Evans is the cheapest Chevron in San Francisco and also that district is in the hood or lower income district. Plus, Chevron is a higher end quality gas. I am one of the few San Francisco natives who are still around.
@IQLion
The only thing would explain people using the more expensive gas station is brand loyalty. They may have rewards points or a dedicated credit card which gives them extra money towards gas, negating the savings that cheaper option gives. The other reason is that certain gas stations like Sheetz, Liberty, and se others have worse quality gas at cheaper price. That means that gas won't last as long or be worse for your car in the long run.
@Helicard
The cheap gas station is always packed when you are in a rush
@rexnicious
This video reminded me how much I loved my college economics classes.
@Guffyzilla
I will drive 5 minutes out of my way to say .25 cents a gallon at Costco…. What are you talking about 😂😂
@infamoushx9869
I think it’s mainly based off convenience. It’s probably harder to go one way if you use a certain gas station. Where I used to live, there was two similar to this and depending on where I was going after, I used the one that was mor convenient cause some times I couldn’t make a turn. Also, I never paid attention to the prices.
@curlyhairdudeify
Bad example. Chevron with Techron is more expensive than regular cheap gasoline. I use the premium. Cheap gasoline makes my car feel like it's "janking", and struggling to run when I step on the gas after being stopped at a ted light. My brother is a mechanic, and I used to have that problem when I used the cheap gas.
@Dave12753
Those gas prices are Outrageous. Around where im at its like $2.90-$3.10
@vahjayjayaddict
Theres an intersection on a boulevard where the gas prices are usually 75 cents higher at the two on the corners. Go any direction & you will see a big drop in price. But people still buy their gas. They are capturing the market that buys gas when they need it not bevause of price. The price sensitive people know the best place to buy gas & go there. On a very busy boulevard, theres always going to be people who just realized they need gas, & if they buy based on need not price they will fill up at the expensive station.
@sbkscuify
Because the more expensive one is only 8cents different. I’m not making a u turn or otherwise making it inconvenient for me over 8 cents a gallon. 20 gallons would only be a saving of $1.60.
@bigc9464
And when speculators think oil might go up, gas proces go up that morning. But if oil drops $20 a barrel. Itll be a few weeks before you see it at the pump, and its very infuriating knowing politicians and other useless people are getting rich of a necessary commodity
@DInDelusion
Gas is mostly inelastic on the short term though, on the long-term people do make decisions based on gas prices. In the short-term people do decide to put off a road trip because gas prices have gone up, or fill up next week if they're not too low. In the long-term people do hybrids, electric vehicles or more fuel efficient combustion vehicles. So the price does drive demand just not to the same extent as other products
@senioravocado1864
The reason why people choose the more expensive option over the less expensive one is more probably because of brand loyalty, but I'm nurse, neither a sociologist nor an economist
@vladrazym9955