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Yeah, but it is the legislation that is preventing the competition and thus making them a monopoly, otherwise they would be disrupted by nimbler, faster startup
by nickpp 6y ago
Yeah, but it is the legislation that is preventing the competition and thus making them a monopoly, otherwise they would be disrupted by nimbler, faster startups of the day for which a monopolized market is an irresistible target (little competition and large profits).
- lumost 6y agoThis doesn't really work for natural monopolies, a small phone operator doesn't connect you to many people, a small steel mill doesn't have the economy of scale as a large mill, small oil operators couldn't build their own oil distribution.
- nickpp 6y agoI don't think those are actually natural monopolies. But there are ways to compete when you are small and you can't compete on the usuals (price, distribution, etc). It takes creativity though. I remember when the local telecom monopoly in my town held ski-high Internet prices, regular people started laying up Ethernet cables in the air between high-rises. A new ISP was born that way, who now has completely wiped out the original telecom. Of course though, there is now a regulation against doing that kind of thing...