Some counties in Califomia provide a free gallon of gas to drivers who run out of fuel

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Some counties in Califomia provide a free gallon of gas to drivers who run out of fuel on the freeway. Recently, as the price of gasoline has increased, there has been an increase in the number of drivers deliberately running out of fuel. One tow-truck driver said he expected even more business "when the price of gas is closer to \(\$ 4\) a gallon." What economic concept can explain this phenomenon?

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Public Finance

ISBN: 9780073511283

8th Edition

Authors: Harvey Rosen, Ted Gayer

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