RE: The end of the enlightenment?
October 17, 2010 at 1:21 pm
(This post was last modified: October 17, 2010 at 4:12 pm by Anomalocaris.)
Vital services are those which enjoy substantial economies of scale, so that multiple competing small players will be fundamentally substantially less efficient than, and therefore uncompetitive with, one large single player, and loss of the large player can not adequately made good by multiple smaller new entrants. This type of services are natural monopolies whose existence is itself a public good, but whose tendency towards monopoly pricing and unincentive towards improvement must be controlled very cumbersome government regulation or government ownership.
Cases where breaking up of regulated or government owned services let to demonstrable loss of efficiency and service quality is more numerous then you think.
Cases where breaking up of regulated or government owned services let to demonstrable loss of efficiency and service quality is more numerous then you think.