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How they respond depends on whether the regulation causes or mitigates market power. for example,Something like deregulating the last mile for internet is proba
by snapplebobapple 3y ago
How they respond depends on whether the regulation causes or mitigates market power. for example,Something like deregulating the last mile for internet is probably not going to end well because the incumbents control that and that is the mote that is expensive enough to recreate that it causes monopoly. Copyright causes monopoly because it stops marginal price being able to equal marginal cost by allowing only one person the right to provide the copyrighted thing. get rid of it and price goes to zero pretty fast because cost of electronic diatribution is near zero
- miki123211 3y ago> that is the mote that is expensive enough to recreate A somewhat large part of why it is so expensive to recreate is all the regulations and burreaucracy involved in laying cables along public roads. Make that significantly easier and cheaper, and you suddenly need those last-mile regulations a lot less. Network effects are where you actually need regulation.
- snapplebobapple 3y agoI am skeptical that removing rwgularion would solve all of the last mile issue because there is a moaaic of different starting posotions and what that looks like determines the deregulated cost of dupkicating service (eg does a govt owned utility own the poles and will allow cheap usage or does the incumbent fpr profit own it and will blocl usage as justone starting condition of many).