more on Locked In a Cell: How Cell Phone Early Terminati on Fees Hurt Consumers

[David Farber <dave () farber net>]

Begin forwarded message:

From: Chris Beck <cbeck () pacanukeha net>
Date: October 16, 2005 2:44:15 PM EDT
To: dave () farber net
Subject: Re: [IP] more on Locked In a Cell: How Cell Phone Early  
Terminati on Fees Hurt Consumers


Rumour has it David Farber, on or about 16.Oct.2005 14:22, whispered:

> *What?*  Are you seriously arguing that the carriers should be  
> _required_
> to give you service even if they fear they're going to lose money by
> serving you?  Are you insane?

No.  What he is saying, even though he doesn't realise it, is that  
free-market
economics do not apply when
a) the cost of entry is billions of dollars and
b) the number of competitors is less than x (where x is a number  
between 5 and
30 and a Nobel Prize in economics will be awarded to the person/ 
people who
develop the formula to calculate it)

There does not appear to be any real competition between cell phone  
providers
and without competition there is no need to worry about customer  
satisfaction.
Certainly they hate each other and desperately want each other's  
customers but
there does not seem to be any creativity or variation in providing  
the service -
and that, to me, is the key indicator of competition.

I leave the solution as an exercise for the reader.

--
Chris Beck  -  http://pacanukeha.blogspot.com
Antiquis temporibus, nati tibi similes in rupibus ventosissimis
exponebantur ad necem.


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