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And this exactly how lack of net neutrality (combined with lack of infrastructure competition) messes up market signaling. A game then inflates its price, and a
by dv_dt 9y ago
And this exactly how lack of net neutrality (combined with lack of infrastructure competition) messes up market signaling. A game then inflates its price, and all customers of the game pay a little bit extra because in some areas the ISP is shaking them down. The pricing pressure lands on the game company to resolve, in part with costs to customers which only have an indirect link to the transaction, not on the ISP that could actually resolve the problem with the direct parties involved.
- murph-almighty 9y agoHi, what is market signaling?
- dv_dt 9y agoIt is how markets use prices as signals to decide what to produce and deliver efficiently. If the pricing of the good if ISP performance is actually hidden from the end consumer, then it muddies the customer valuation of both the game as a product, as well as an ISP as a product. By linking the prices of both in a hidden way, consumers don't have an effective way to make clear product choices which in turn signal to a company that it is producing the right thing (or the wrong thing). If the signals aren't clear, then the market becomes less efficient. The game company is no longer competes or is fully focused to make a good game, and the ISP is no longer competing to produce better network access.