Pat said,
< I've never done this before, but the gas prices have me ticked
off. So I'm pasting this in:>
I know that I share your concern for high gas prices. But that message does
not outline the way to make a difference.
Quoting the "originator" (as these are almost always faked by somebody who
makes up or steals an impressive-sounding address):
Well, let's face it, you just aren't a mathematician.
But I am ... so trust me on this one.)
Maybe the writer is, but mathematicians are not _necessarily_ sensible, nor
good with economics. Just good at math.
How long would all that take? If each of us sends this e-mail out to ten
more people within one day of receipt, all 300 MILLION people could
conceivably be contacted within the next 8 days!!! I'll bet you didn't
think you and I had that much potential, did you! Acting together we can
make a difference.
"Conceivably" this person should be in advertising. Just think, do all 300
million have e-mail? No. Do you know 10 people who don't know any of the
people you know, whose friends don't know any of their friends? No. Even if
you did follow this pyramid scheme arrangement, you'd only get a few new
people with each generation, not ten. And most people would just get fifteen
copies of the same message from their friends.
If this makes sense to you, please pass this message on. PLEASE HOLD OUT
UNTIL THEY LOWER THEIR PRICES TO THE $1.30 RANGE AND KEEP THEM DOWN. THIS
CAN REALLY WORK.
Econ 101 - This only works if actual demand goes down. Let's say that Exxon
notices that their sales are down 20%, which is likely a lot more of an effect
than this will create. They maybe drop their prices a little. Their sales
don't go up much, though, because of all the vengeful, right-minded sheep
following this request. What happens? Well, say we all went to Chevron
instead. Their sales climb 20%, and they notice that all of these folks
coming over are staying with them no matter what the cost, because they won't
go back to Exxon. ("price inflexibility of demand" for those following along
in the text.) So Chevron starts inching its prices UPWARD, because their
sales don't drop! They are always seeking to maximize their total profit.
Like any business does.
As soon as we finally get annoyed with that and go back, then Exxon's prices
climb back up in any case!
Does anybody use less gas? I never heard that mentioned. Worst case for
Exxon, they just sell their excess production to Chevron.
Kerry Lyle, Director, Research Coordinator
Even if this guy did write it, his car is a couple of laps down on the field,
so to speak. What's the only thing that will really work? Falling demand,
and / or rising supply. The latter of which would have to be legislated
somehow to force refineries to make more special California gas than they
could sell. Maybe, now, as Pat's friend Bob suggested, if I write thirty
friends and tell them to quit using their Exxon CREDIT CARDS, and use their
SCCA branded bank cards instead, :-) then there will be a net loss of profits
at Exxon.
At whose stations I haven't shopped since the Exxon Valdez disaster, in any
case.
PaulT (sorry for staying off topic, but the new results weren't out yet to
over-analyze.)
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