This is a puzzle to me. Say the Shell gas station is $2.82 and just across the street the BP station is $2.90, but both stations are packed with customers. Why choose the more expensive station?
One reason is obvious: having a loyalty card which lowers the effective price. This solves part of the mystery, but then again, a lot of people pay in cash or on debit. So what else is there?
One of my friends only fills up at one brand, claiming it's better for the car. Though I've never heard this substantiated by any car expert. Things I've read say gas is largely substitutable. Am I missing something? Why go to a more expensive station?
One reason is obvious: having a loyalty card which lowers the effective price. This solves part of the mystery, but then again, a lot of people pay in cash or on debit. So what else is there?
One of my friends only fills up at one brand, claiming it's better for the car. Though I've never heard this substantiated by any car expert. Things I've read say gas is largely substitutable. Am I missing something? Why go to a more expensive station?
