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Governemnt intervention is wrong only if we're talking about perfectly efficient markets. But regulation is a good thing when: 1) It's not a market – there are
by RivieraKid 13y ago
Governemnt intervention is wrong only if we're talking about perfectly efficient markets. But regulation is a good thing when:
1) It's not a market – there are not enough competing companies. (Which is the case of network operators.)
2) Customers don't make optimal market decisions.
- driverdan 13y ago> 1) It's not a market – there are not enough competing companies. (Which is the case of network operators.) Due to other unnecessary government regulation. Regulations always have a snowball effect. > 2) Customers don't make optimal market decisions. That's the customer's problem, not the government's. It benefits customers who do make optimal decisions.
- RivieraKid 13y ago> Due to other unnecessary government regulation. Regulations always have a snowball effect. This is simply not true. If it was not regulated at all, the situation would be worse. This is an industry that has a natural tendency to become mono/oligo-polic. (Similarly to water supply inustry.) > That's the customer's problem, not the government's. It benefits customers who do make optimal decisions. That deserves a longer discussion but I'll try to sum it up. One example of a regulation that helps customers make better decisions is that misleading advertisment is banned. When I say regulation, I mean that the customers collectively decided that it would be better for everyone if misleading ads were banned. There's absolutely nothing wrong with this.