Quote:
Originally Posted by kunkstyle
How is that any different than the stock market? Prices will tank or skyrocket on the slightest whiff of speculation.
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Right but we constantly hear that the price is based on supply and demand. It's clearly not. There are times when stocks trade out of whack to their fundamentals and you don't have to buy them. You just don't have the option with gas at this point.
Quote:
Originally Posted by SebC
Funny thing - very narrow price bands could be collusion - but they could also be an extremely competitive market.
Question for those who think gas prices arise from collusion: what market would you point to as a good example of competition working?
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I don't think the entire price is due to collusion, but there is absolutely an element. The production costs across companies varies, and we all know that. Yet the prices are literally identical to the tenth of a cent. So I think competition works in the oil industry in general, just not to price the final product as efficiently as it should.