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This 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 scal
by lumost 6y ago
This 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...