Sunday, November 18, 2007

Talk About Cutthroat Competition and Price Wars!!

DETROIT, MI -- The two gas stations stand across an intersection from each other in Detroit, where even a penny's difference was enough to lure customers. And so came the price war: One station dropped a cent or two, and the other grudgingly followed.

But the seemingly petty back-and-forth escalated Friday, ending with a fatal bullet in BP station owner Jawad Bazzi's head over what police say was a 3-cent difference in the cost of regular gas.

The Marathon station dropped its price to $2.93. That angered Jawad Bazzi, whose regular gas was priced at $2.96. Bazzi walked across the street with a couple of employees to confront the Marathon owner and his posse. The groups argued, then began throwing punches. One of Bazzi's employees hit a Marathon employee with a baseball bat, injuring him. That's when the Marathon owner grabbed a handgun and fired three or four times. Bazzi, 45, was shot in the head.

And here's the amazing conclusion to the story:

After the shooting, with the competing station closed, BP's price per gallon increased to $3.09 for regular.

(HT: Holeydonut)


At 11/18/2007 1:36 PM, Anonymous Anonymous said...

So we see the "Natural Outcome of Competition" where one group experiences "Rising Inequality" with the inability to find a peaceful solution satisfactory to all parties.

This is the way men have been sucked into destructive and aggressive acts throughout history.

At 11/18/2007 5:12 PM, Anonymous Anonymous said...

I think that this is what we need in politics. Think of all the BS that could be eliminated.

This is economics at its best.


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