 kapilThe Kapil
join:2000-04-26
Chicago, IL | Oooh. Oooh. I know! Why doesn't telco pricing make sense to Economists? The same economists who missed the disaster that was the mortgage meltdown? The same economists who theorize that capitalism, i.e. the ability of corporations to grow period after period till the end of time is actually credible or even possible? Hell, I'm surprised that economists, as a group, can put on their pants the right way in the morning.
Telcos spend millions obfuscating and lobbying. Telcos don't even get telco pricing. I know, I've worked for a couple of them.
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chimera
join:2009-06-09
Washington, DC Reviews:
 ·Comcast
| If you kept reading you would have noticed he then explained how their pricing does make sense to economists as these pricing models allow for price gouging due to consumers being risk adverse. The complaint economists have is that these pricing models do not reflect the reality of the costs and can only be sustained due to the ologoply market which is itself a market failure.
Now I do understand that teleco's can naturally establish monopolies due to how their cost infrastructure works, but any economist worth their salt ought to acknowledge that this forcing regulation since pricing using the standard model where profits are dictated by the cost formed by barriers to entry stops working in cases because the barriers this high. |
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 pnh102Reptiles Are Cuddly And PrettyPremium
join:2002-05-02
Mount Airy, MD | reply to kapil
I have to agree with you here. Most economists are dumber than stumps. That entire profession is a joke.
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Blagojevich / Madoff 2012! |
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 DaveDudeNo Fear
join:1999-09-01
New Jersey
kudos:1
 ·Vonage
·ViaTalk
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said by kapil:Why doesn't telco pricing make sense to Economists? The same economists who missed the disaster that was the mortgage meltdown? The same economists who theorize that capitalism, i.e. the ability of corporations to grow period after period till the end of time is actually credible or even possible? Hell, I'm surprised that economists, as a group, can put on their pants the right way in the morning. Telcos spend millions obfuscating and lobbying. Telcos don't even get telco pricing. I know, I've worked for a couple of them. Considering Bush asked 18 times to investigate Frannie and Freddie Mac, for its viability i guess your right. Who knew you would be on Bush's side on this.
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They Live... We Sleep...
“Spreading the wealth around” never results in a better outcome for people. It always results in destruction.
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kapilThe Kapil
join:2000-04-26
Chicago, IL | |
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