Speaking of inflation, I noticed that people have irrational sensitivity to gas prices.
Warehouse club Costco stores in my area also sell gas. The price is usually a little cheaper than the price at other gas stations. I can tell by the length of the lines how much cheaper it is. If it’s five cents cheaper, the lines are very short or non-existent. If it’s cheaper by 10 cents or more, the lines are long. You have to wait good 10-15 minutes.
Is it worth it?
My car has a 16-gallon tank. A fill-up is usually a little over 14 gallons. Saving 10 cents a gallon only saves $1.50 or so. I’m pretty sure there are better ways to save $1.50 a week than waiting in line for cheaper gas.
So why do you think people have this irrational sensitivity to gas prices? Dan Ariely, a behavior economics professor at Duke University and author of the book Predictably Irrational says it’s because people stare at the meter for too long.
I think it’s because it’s a sure thing. Waiting in line for 10-15 minutes will save $1.50 for sure. Buying tomatoes from a different store may or may not save money because stores don’t post tomato prices high up there.