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U-Haul Economics

Posted on Sep. 10, 05 | 11:12 AM by Andrew Roth | Topic:
Link to Article: http://www.clubforgrowth.org/perm/?postID=3179

My blog post about U-Haul rates between California and Nevada has created some buzz in the blogosphere. In that post, I used U-Haul's website to query a one-way rental between two cities for a 10-foot van for October 1st, 2005.
One-Way Trip  Price 
Los Angeles to Las Vegas  $454.00 
Las Vegas to Los Angeles  $119.00 
The idea behind this experiment was to provide some crude evidence that there is more demand to leave California and move to Nevada than vice versa, perhaps because of the large difference in tax rates (Nevada is more tax-friendly). In any case, Chris Lightfoot -- apparently a very clever guy when it comes to computers -- ran with the idea and harvested a lot of data from U-Haul's website. Check out his analysis here. Steve Levitt, author of Freakonomics, read Lightfoot's findings and provides his thoughts here.
Permalink: http://www.clubforgrowth.org/perm/?postID=3179
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