Mankiw: Nothing Funky Going On at the Rental Counter

Michael Giberson

At Greg Mankiw’s blog he cites a Wall Street Journal article claiming some “funky economics” are happening at the car rental counter, as renters increasingly are choosing smaller, more fuel-efficient cars in the face of higher gasoline prices. As Mankiw points out, there’s nothing funky going on, Gas and Guzzlers are Complements.


3 thoughts on “Mankiw: Nothing Funky Going On at the Rental Counter

  1. Why would you choose a fuel efficient car when your employer is footing the bill? Aren’t most rentals for business?

    I get the coolest car that I can get away with. I’m the king of upgrades. I particularly like asking for an SUV for the same price as the crappy midsize sedans that I’m supposed to rent.

  2. Oh, Cuzzbutt, it’s people like you who make the rental companies feel like they’re doing me a favor when they “give” me an SUV instead of the mid-size or small car that I tried to reserve. It’s gotten to be a joke with me because it happens so often, but it’s irritating just the same. I’ve been driving small cars for years, and I don’t want a truck to drive in a place I’m not all that familiar with. When I’m renting for business, it has nothing to do with efficiency, but everything to do with being as comfortable and safe as possible while driving an unfamiliar vehicle in an unfamiliar place. That goes both ways, of course, but I do wish they’d stop doing me the “favor” of assuming that I’d be just as happy with an SUV.

  3. owner finance contract

    The Alabama House of Representatives passed HB 287 , sponsored by Rep. Jeff McLaughlin, which would establish minimum standards for rental properties and detail the legal rights of both landlords and tenants. The legislation is a compromise approved by…

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