Could Price Comparison Apps Be Making Gas MORE Expensive? | The Professor Is In
Summary
Justin Wolfers and Megan Connors explore why gas prices rise quickly but fall slowly, discussing concepts like sticky prices, menu costs, and production asymmetries. They debate the definition of price gouging and analyze how apps like GasBuddy might facilitate tac collusion among stations. The episode concludes with a status update on Wolfers' bet regarding gas prices ahead of the midterm elections, linking them to geopolitical tensions in Iran.
Topics discussed
Intro and gas price asymmetry recap
Rockets and feathers: Gas vs. general economy
Price stickiness and macroeconomic equilibrium
Menu costs: Metaphor vs. reality
Supply chain asymmetries and inventory costs
Defining price gouging and social conventions
Anti-gouging laws and economic consulting
Gas apps and tacit collusion dynamics
Gas price bet and Iran war impact
Conclusion and community engagement
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