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Wednesday, October 19, 2011

Markets NOT in Everything: No Gas from 11pm-7 am


"In 48 states, customers are allowed to pump their own gasoline. In 48 states, filling station attendants no longer exist as a profession. Labor costs are lower. These savings are passed on to customers in the form of lower gasoline prices.

In Oregon, any convenience store that sells gasoline must hire a gasoline attendant. So, there are fewer convenience stores acting as sellers of gasoline. This law restricts entry into the field.

Because there are few customers from 11 p.m. to 7 a.m., it is unprofitable for stations to hire full-time attendants. The solution is to close the stations. When the stations are closed, the manager turns off the pumps. No one can buy gasoline at the station."

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