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Friday, May 13, 2011
The Cooking Gas Scenario
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1 comment:
Anonymous
said...
As the subsidy for the 20lb cylinder increases, it makes arbitrage much more likely since the cost of 5 x 20 lb cylinder will be significantly less than the cost of 1 100lb cylinder.
There is the additional cost of the hassle of switching cylinders as well.
Perhaps there can be limit on the number of 20 lb cylinders that 1 consumer can buy at one time.
1 comment:
As the subsidy for the 20lb cylinder increases, it makes arbitrage much more likely since the cost of 5 x 20 lb cylinder will be significantly less than the cost of 1 100lb cylinder.
There is the additional cost of the hassle of switching cylinders as well.
Perhaps there can be limit on the number of 20 lb cylinders that 1 consumer can buy at one time.
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