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Your comment contains a number of erroneous assertions about requiring "infinite" suppliers/customers and products being "fungible". I am struggling to think o
by tacostakohashi 5y ago
Your comment contains a number of erroneous assertions about requiring "infinite" suppliers/customers and products being "fungible".
I am struggling to think of anything more fungible than electricity, and water, mail, and internet access follow closely.
Rather, the reason that competition is problematic in these areas is because they are natural monopolies:
https://en.wikipedia.org/wiki/Natural_monopoly https://en.wikipedia.org/wiki/Natural_monopoly
- goodpoint 5y agoWhat is not fungible is the service you are signing up for. As a home consumer you cannot switch from your current electricity provider to a cheaper one... that operates in a different continent. The link you provided is spot on and does not contradict in any way what I wrote. "Natural monopolies were recognized as potential sources of market failure as early as the 19th century" Another good page: https://en.wikipedia.org/wiki/Captive_market https://en.wikipedia.org/wiki/Captive_market