when gasoline prices rise,it makes the news.
Reporters mob gas stations to ask drivers how they are
dealing with the higher prices. Many drivers say, “What can
I do? I have to drive.” Some drivers declare they will curtail their driving
while others complain of price gouging and oil company conspiracies.
We know that few drivers adjust their driving behavior much in response
to gasoline price changes on the scale that occurred during our study, but
we do see that sales of smaller vehicles have increased, and that hybrids
are getting lots of attention. But how do consumers really think about
and respond to gasoline prices? Do they know how much they spend on
gasoline over the course of a year, or do they think only in terms of price
per gallon? When they buy a car, do they think about fuel costs over time,
are they just looking for high miles per gallon (MPG)?