 | Network Sharing & Friends... Seems like most people forgot something from Economics 101: The idea of a "natural monopoly."
What that doctrine basically states is that some services, such as those of infrastructure, generally is best handled by a single entity. Otherwise, any time a competitor attempts to compete, new infrastructure would need to be added, which creates annoyingly bad situations such as streets that are always dug up, etc.
Of course, the best compromise between free markets and monopolies would be for a neutral, independent entity to maintain the infrastructure, and allow numerous competitors to lease the exact same infrastructure to service different customers -- not unlike how the electricity "deregulation" happened in Texas. This does have its own disadvantages as well... such as the creation of a price floor and relatively low profit margins for the competing companies, which may dissuade new companies from entering the fray from time to time... still, it's a semi-devious way for a government entity to control the prices on the consumer's end without undue burden on the regulatory agencies by introducing more companies to look after... |
 pcscdmaChocobo Chocobo Random BattlePremium join:2004-01-14 Winterset, IA | said by RogerDucky:Of course, the best compromise between free markets and monopolies would be for a neutral, independent entity to maintain the infrastructure, and allow numerous competitors to lease the exact same infrastructure to service different customers -- not unlike how the electricity "deregulation" happened in Texas. That's exactly what Opportunity Iowa is -
»America Wires Itself
»www.opportunityiowa.com/ -- What not to get for Christmas/Hanukkah/whatever. |