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Competition is not only ineffective in monopolistic markets. Also oligopolic markets are very inefficient. In Italy's example the price you now pay for your mob
by silviot 5y ago
Competition is not only ineffective in monopolistic markets. Also oligopolic markets are very inefficient. In Italy's example the price you now pay for your mobile plan (7 €/month for 50 GB) was made possible by Iliad, a new ISP that broke the Italian oligopoly and forced all competitors to bring prices down (or better data caps up) ten fold in the span of a few months.
- alanfranz 5y agoNo, not tenfold. Iliad entered a competitive market, but my pre-iliad price was around 10 eur/month, albeit with smaller data allowance. Iliad helped lowering prices by offering a lower end service.