Quote:
Originally Posted by Azure
Shocking that government intervention results in the consumer getting screwed over even more.
Perhaps they should just allow the market to balance everything out instead of imposing rules like this that only result in even more price gouging.
|
And if it was a competitive market with full information, laissez faire may work.
But it isn't - it is an oligopoly with large economies of scale, large barriers to entry and getting information is difficult.
I doubt even Verizon changes things much. They will initially create a price war to build up their client base and prices will drop across the board. But once their client base starts to be sustainable they will raise prices and the others will follow suit.
It takes more than 3 or 4 entrants for it to be a competitive market place that drives down prices.