nanog mailing list archives
RE: What do we mean when we say "competition?"
From: "David Schwartz" <davids () webmaster com>
Date: Tue, 15 Nov 2005 15:07:22 -0800
That is the exact problem with a [mon|du]opoly. The incumbents drive the price so low (because they own the network) that it drives out an potential competition.So you're complaining that the problem with lack of competition is that the prices are too LOW? As a consumer, I'm thrilled with low price, and would only change providers for a well-defined benefit or a lower price.
Low prices of the monopoly is driving out viable competition. Once competition is gone the prices WILL be raised.
I hear this claim a lot, but it's very hard to believe. Surely raising the prices will just bring the competition back. It's basically just a "damned if you do, damned if you don't". If the prices are high, then monopoly is hurting the consumer. If prices are low, then monopoly is hurting the competition.
Competition brings innovation of products and services, not just lower prices.
Right, except this destroys your previous point. If competitors can bring innovation and not just low prices, then low prices shouldn't drive out competitors. The flip side of the "everything is bad" argument is that everything is good. Specifically: 1) Low prices are good for consumers. 2) High prices are good for competitors. 3) Prices don't matter that much to competitors because they can bring innovation, not just better pricing. DS
Current thread:
- Re: [Latest draft of Internet regulation bill], (continued)
- Re: [Latest draft of Internet regulation bill] Blaine Christian (Nov 14)
- RE: [Latest draft of Internet regulation bill] Michael Hallgren (Nov 14)
- Re: [Latest draft of Internet regulation bill] Jared Mauch (Nov 15)
- Re: [Latest draft of Internet regulation bill] Steven J. Sobol (Nov 17)
- Re: [Latest draft of Internet regulation bill] Jared Mauch (Nov 17)
- Re: [Latest draft of Internet regulation bill] Owen DeLong (Nov 15)
- What do we mean when we say "competition?" (was: Re: [Latest draft of Internet regulation bill]) David Barak (Nov 15)
- Re: What do we mean when we say "competition?" (was: Re: [Latest draft of Internet regulation bill]) Matthew Crocker (Nov 15)
- Re: What do we mean when we say "competition?" David Barak (Nov 15)
- Re: What do we mean when we say "competition?" Matthew Crocker (Nov 15)
- RE: What do we mean when we say "competition?" David Schwartz (Nov 15)
- Re: What do we mean when we say "competition?" Owen DeLong (Nov 15)
- Re: What do we mean when we say "competition?" Sean Donelan (Nov 15)
- Re: What do we mean when we say "competition?" Owen DeLong (Nov 15)
- Re: What do we mean when we say "competition?" Sean Donelan (Nov 15)
- Re: What do we mean when we say "competition?" David Barak (Nov 15)
- Re: What do we mean when we say "competition?" Owen DeLong (Nov 15)
- Re: What do we mean when we say "competition?" Sean Donelan (Nov 16)
- Re: What do we mean when we say "competition?" (was: Re: [Latest draft of Internet regulation bill]) Michael . Dillon (Nov 15)
- Re: What do we mean when we say "competition?" (was: Re: [Latest draft of Internet regulation bill]) Mikael Abrahamsson (Nov 15)
- Re: What do we mean when we say "competition?" (was: Re: [Latest draft of Internet regulation bill]) Owen DeLong (Nov 15)