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system
why do gas stations charge different amounts in the same local area?
user
some of this is demand management.  the local bj's wholesale club sells gas $0.10-0.15/gallon less than the prevailing rate. typically there are lines of 3-5 cars waiting for a pump during busy periods. people are price-conscious when buying gas, which draws crowds and the retailer actually wants a line -- the whole point of the gas station is to draw traffic to the warehouse club. other gas stations have the opposite problem -- big crowds lead to fewer people buying food and drinks in the convenience store, which is where the business actually makes its money. they want a steady stream of people. in my area, there is a gas station that is on a busy intersection right off the highway ramp going to the airport. their problem is that people returning rental cars used to swarm the gas station and cause traffic tie-ups on the road -- a problem averted by marking up the gas $0.30.
assistant