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"Consumers have other options (mainly iOS)" Two or three competitors in a space does not a robust market make. For one thing, it is very easy to create side-c
by brandmeyer 9y ago
"Consumers have other options (mainly iOS)"
Two or three competitors in a space does not a robust market make. For one thing, it is very easy to create side-channels of collusion between the competitors. Just as one example closer to everyday life, think about how easy it is for two people to share information in bridge or spades (the card games) without overt communication. I guarantee that side-channel collusion is happening between executives any time the number of players has gotten small enough.
How many times have regulatory agencies used the existence of only two networking/telecom providers in an area as a basis for deciding that a market has sufficient competition to allow another merger to go through? We can see the adverse effects of the lack of competition in the terrible customer service and product quality in that industry.
Why can't we see it in our own?
- dude01 9y agoThere used to be a blog titled "Oligopoly Watch" (looks like it's dead now) where they talked about two or more groups of companies dominating various market segments. So yeah, you can have way more than two companies indirectly colluding to fix prices and competition. I don't know if this is the greatest link, but here's a list of some current oligopolies: https://www.investopedia.com/ask/answers/121514/what-are-some-current-examples-oligopolies.asp https://www.investopedia.com/ask/answers/121514/what-are-som...