MrMoody
But the Grinch ... did Not.
join:2002-09-03
Smithfield, NC
 ·Embarq
 ·Skype
·magicjack.com
| reply to sbrook
Re: Free market competition is OK in a truly free market
Yes. The problem is, having only 2-4 players doesn't make competition. When you only have 1-3 competitors it's much more profitable to cooperate with them and keep prices up, even if the cooperation has to remain unspoken.
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The public is a poor business manager. |
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TheGhost
Premium
join:2003-01-03
Lake Forest, IL
clubs:
 ·AT&T U-Verse
 ·Comcast
| In many places it is even worse, there is at most one competitor. Since the companies are not forced to offer uniform pricing across their service areas, they can keep prices higher in the no competition areas to fund cut rate prices where they have competition until the competition goes out of business.
Also, many times when there are just two options, the oligopoly buddy system kicks in. |
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