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Regarding 2), that seems like an un-justified expectation that 2x in some category should be 2x price. I can buy a Chevrolet Spark for $14K. Top speed is liste

• dudul 8y ago
  I have no idea what point you're trying to make. People in France or Germany have access to literally 12 different providers. Everywhere. Granted, it looks like the overall speed is below the US's according to the report, but prices are so much lower (my parents probably pay in the order of $10$/mo for their TV/Internet package) and access is way more homogenous. I suspect that US results are vastly skewed by hyper-connected areas vs huge parts of the country where Internet is total garbage.
  • greggyb 8y ago
    Your second point assumes that scaling some attribute of value by a factor of two should be associated with an exact doubling of price. These were literally the first three things I could think of, but I'm sure we could braistorm many more items where the price of a product or service that is twice as good along some axis costs more than twice as much. It is therefore not a strong argument to say, "Now, for fun, let's integrate the price dimension to this report. Yes I have better (maybe 1.5 to 2 times as fast) Internet than my parents who are in Europe, but I also pay 3 times what they pay for it. "
    • sethrin 8y ago
      No, there was no assumption related to an exact doubling, and it's not reasonable to infer one, and arguing against it by means of analogies to unlike goods is unsound.
      • greggyb 8y ago
        Well now we're two people on the internet arguing about what a third meant. This couldn't possibly end badly (: So I have two questions. 1: I read the original parent comment's second point as indicating that a 2x in performance for >2x price as something that should be seen negatively. Do you disagree with this intepretation? Why? 2: My argument was not clearly stated, so I will first state it here. It is unreasonable to expect that performance/quality and price correlate linearly with a coefficient of 1. I offered examples of other disparate products where performance/quality do not double for an exact double price, and in fact doubling performance is associated with much more than doubling price. With the point that we should not expect double performance = double price, it seems that anyone positing that this should be the case for a specific product bears the burden of proof. The question is this: do you think that I am wrong and that we should expect in general to see double performance for double price? Expansion on my position that the default should not be an expectation of "double performance for double cost": Diminishing returns are common in many optimization tasks. If we see diminishing returns, we should expect prices to more than double for a doubling of performance in general. Additional point on pricing of broadband. A cousin commenter observed that most of the broadband in the countries in question is DSL rather than cable. If we see two different technologies in play, one able to double the performance of the other, it seems exceptionally unreasonable to expect such linear scaling of price.
        • sethrin 8y ago
          I do not see anything in the parent comment indicating a linear relationship. Making a more general comparison of prices is perfectly sound. If you must make an inference, you should construe the argument in the most favorable terms. Also, your choice of comparisons were of unlike goods, and "argument from analogy" is a weak form of argument.
  • rayiner 8y ago
    France and Germany have lots of cheap options because they rely heavily on DSL: https://www.oecd.org/sti/broadband/1.2.OECD-FixedMobileBB-2017-12.xls https://www.oecd.org/sti/broadband/1.2.OECD-FixedMobileBB-20... (see the "Fixed Broadband" tab). 70-75% of France and German broadband connections are DSL, versus 22% in the U.S. The copper networks are mostly depreciated, and copper-loop unbundling has created a lot of competition. But that's also why internet in those countries is so slow. According to Akamai, just 18% of French broadband connections are above 15 mbps, versus 48% of U.S. connections. Copper is also a complete dead-end, technology wise. Cable in those countries is not super cheap. Kabel Deutschland's gigabit service has a non-promo price of 69.99 euro ($80): https://translate.google.com/translate?hl=en&sl=de&u=https://www.dslweb.de/vodafone-gigabit-internet.php&prev=search https://translate.google.com/translate?hl=en&sl=de&u=https:/.... Comcast's non-promo pricing is $105, which is a bit more expensive in nominal terms, but cheaper as a percentage of net adjusted disposable income (which is 33% higher in the U.S. than in Germany). You also need to account for differences in labor costs. Broadband isn't like an iPhone, where it's the same product made in China whether you buy it in the U.S. or in Germany. It's a service, like a hotel stay or restaurant meal. Labor to build, maintain, operate, and support the network is a huge part of the cost of broadband, and skilled labor is significantly more expensive in the U.S. than in Germany or France. That's one of the things that makes pricing comparisons between the U.S. and say Romania completely specious. You can buy a 2-ride subway ticket in Bucharest for $1.22--that doesn't tell you anything about what's a reasonable price for a subway ticket in D.C. The $10/month cost for gigabit fiber in Romania is equivalent to $80/month in the U.S.
    • Symbiote 8y ago
      What taxes would someone expect on the $105/month Comcast service? Since all applicable taxes are included in the €70 Kabel Deutschland price.
      • greggyb 8y ago
        Depends on where you live. My total bill for internet service is approximately $110. Of that $110 total, approximately $1.50 is tax/fee.