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Why would a monopolist keep things the same or better? As you said, consumer surplus is the key here. The monopolist will capture almost all of the consumer sur
by sanp 4y ago
Why would a monopolist keep things the same or better? As you said, consumer surplus is the key here. The monopolist will capture almost all of the consumer surplus. This is a worse situation for customers than with competition. With competition this isn’t likely.
- deleted 4y ago[deleted]
- nwah1 4y agoMint Mobile is a service that offers cheap phone plans but doesn't have their own telecommunications stack. It is just enabling a lower tier of customer to operate on the same stack as everyone else. This is vertical integration, not horizontal integration. The level of monopolization remains the same. And even with a monopoly, some of the benefit of simple convenience could come into play when there is acquisitions. Not having to go to a separate store and maintain separate accounts for different things. Having a cable company that sucks and a phone company that sucks is not good. If they merged and the service remained the same then now you just have two bundled services that both suck. Yet, having a bundled plan would potentially be more convenient. T-Mobile offers streaming services, home internet, and other things that Mint doesn't.