chimera
join:2009-06-09
Washington, DC Reviews:
 ·Comcast
| reply to kapil
Re: Oooh. Oooh. I know! 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. |
