Hotelling’s Game, or Why Gas Stations Have Competitors Nearby

Re:Hotelling’s Game, or Why Gas Stations Have Competitors Ne... by pyre on Wednesday July 27, 2011 @10:09PM (#2815079)

I've heard of 'price wars' between gas stations across from each other.

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Re:Hotelling’s Game, or Why Gas Stations Have Competitors Ne... by vacri on Thursday July 28, 2011 @03:17AM (#2815755)

I remember seeing one attendant using binoculars to check out the prices of the station down the road from them.

I also remember a radio station's competition where the petrol station that sold fuel at the lowest price won the competition. In the final hours of the competition, there were two or three stations selling petrol at 1c/litre... and they lost to the station that was paying customers 1c/litre...

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Re:Hotelling’s Game, or Why Gas Stations Have Competitors Ne... by StavrosK on Thursday July 28, 2011 @04:58AM (#2815944)

What was the prize?

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Re:Hotelling’s Game, or Why Gas Stations Have Competitors Ne... by vacri on Thursday July 28, 2011 @07:13AM (#2816217)

It was about 10 years ago, I can't really remember. Something like $10-20k? Maybe 50? It wasn't outrageous, but it was enough to get a lot of petrol stations competing for it.

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Re:Hotelling’s Game, or Why Gas Stations Have Competitors Ne... by madiator on Wednesday July 27, 2011 @11:02PM (#2815190)

like who has the highest price wins?

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