4 ms·
On the other hand companies in competitive markets often become fat and lazy and disregard their customers as well.
by adamsea 7y ago
On the other hand companies in competitive markets often become fat and lazy and disregard their customers as well.
- Ididntdothis 7y agoNot if there is competition. Otherwise they would lose market share quickly. Or not?
- chiefalchemist 7y agoI have Comcast and Fios in my market, I can't say they are competitive. They are like airlines. They operate with a sense of parity. There's no incentive for them to be competitive. In fact, if one of them had too much market share might find themselves in legal heat. That said, my original question is: But how much of the economy can be truly competitive?
- flerchin 7y agoFios and Spectrum in my area. The price is about half what coworkers pay less than 10 miles away where only one has built out. It's interesting that you think airlines aren't competitive. IMO, they're super competitive. New upstarts like Spirit don't show up everyday, but watch what happens to prices when a new market is opened up by Southwest, for example. No one knows what percent of the economy can be truly competitive, but it's probably something like half. I'm hard pressed to find a single area of the economy that doesn't have competitive private entities.
- majewsky 7y agoPublic transit has an incredibly strong pressure to monopolize. For rail-based systems like trams, it's just topologically impossible to have two competing systems with decent coverage in the same city. And even for busses, having two competing tariffs is so confusing that public pressure will force both competitors to offer a shared tariff system, at which point they're not really competing anymore.
- chiefalchemist 7y agoAirlines have become a commodity. It doesn't have to be that way. But they have all decide on the parity; on the same essential model. They "compete" but they are hardly competitive.