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I think actually there are many natural monopolies in terms of economic profit and doubling infrastructure is inefficent. There is a nice private solution to t
by nickik 10y ago
I think actually there are many natural monopolies in terms of economic profit and doubling infrastructure is inefficent.
There is a nice private solution to this, and this sort of thing is not talked about enough.
Imagen we have two companies, both are ISP with their own infrastructure. Then because of other reason a new expensive infrastructure project is needed. These two could ban together and form a new organisation (non-provit or a club) that economises on the infrastructure but provides access and price garanties to both companies and maybe even sell access capacity to third parties.
The differnce to a normal company providing infrastructure is that the costumers of that company always need to be afraid of price raises. Once you have this club situation you essentially have one infrastructure, but you avoid monopoly pricing because competitive game has moved to a higher abstraction. This would provide very low cost and very low price to consumers.
If you apply a regulatory system as soon as you think there is a natural monopoly the industry will almost certantly stagnate.