JohnSJ
join:2004-08-14
Lafayette, LA | reply to calvoiper
Re: Two monopolists make a duopoly, not competitio Thank you, Calvoiper, thank you. A duopoly is not competition and any elementary economics text you care to consult will echo your point. Duopolies save very little money; instead they segment the market in some stable way and continue to gouge at a point just below the point for monopoly rents.
The big debate is over how many companies it takes to have real competition and the answer is, of course, "it depends" but I've not seen a number below 5.
Your cellphone example is one of the best cases of this. Recent consolidations auger a rise in prices; the days of cheap cellular may be fading. The FCC will have blessed this loss of competition. These guys are supposed to know what they are doing! (I worry that they do.) |
