2 ms·
In a perfect system, filled with perfect altruistic people, that always have perfect information, serving a community of people that all have the exact same nee
by syshum 5y ago
In a perfect system, filled with perfect altruistic people, that always have perfect information, serving a community of people that all have the exact same needs then yes a monopoly would always be more efficient.
We do not live in such as world. First My trash needs are not the same as my neighbors trash needs so a single program does not work for all people. Some people have more trash, some people have more recycling, some people have large items all the time, others do not, etc etc etc. This is one of the reasons your city probably does have more than 5 companies already doing service in it, as most cities only provide residential trash services, not commercial, to businesses have to contract out their own trash removal because all of their removal needs are even more varied than residential and a government program would never work
Then there are other problems associated with monopolies that make them inefficient since they are divorced from the feedback loop of their customers. This is why there are very very few natural monopolies, because monopolies are inefficient even though on paper it seems like they would be the most efficient
It is like socialism in that way, good on paper bad in reality.
Monopolies are almost universally found due to some kind of government imposition, law or regulation that protects them.