4 ms·
> if something is allowed and will result in a marginal, even if insignificant rise in income, firms will do it In a closed system, maybe. But there are some o
by bko 2y ago
> if something is allowed and will result in a marginal, even if insignificant rise in income, firms will do it
In a closed system, maybe. But there are some options and the threat of new entrants that keep the system in check (e.g. SpaceLink). Regulation has a cost, and it might be able to prevent some bad behavior but it keeps competition out. That's why the most regulated industries are often the most stagnant, expensive and awful to deal with (think education, legal, health care, banking)
There's a million examples of companies not naively maximizing profits. Why doesn't McDonalds charge for napkins and ketchup? Surely some pointy haired manager suggested this to squeeze out some profit, but it would piss people off and isn't worth it. And this is a better constraint on bad behavior than some unelected regulatory body.
- michaelmrose 2y agoSatellite internet can't meaningfully compete with other forms of internet at scale because it can't accommodate but a fraction of them. Even terrestrial wireless internet can't really replace wired even though its certainly cheaper to deploy.
- afavour 2y agoInternet access is a closed system for a lot of the population. Satellite internet is not meaningful competition in that area given how much of our lives are channeled through an internet connection. 5G cellphone connections are closer but if you put all household data through a cell connection the towers would surely get immediately overloaded. > Why doesn't McDonalds charge for napkins and ketchup? If they did I could just go to Burger King. But someone living in a town where McDonalds is the only restaurant would be powerless. (and McDonalds does now charge for sauces they used to give away for free!)