On Sun, Dec 19, 2010 at 06:12:02PM -0800, JC Dill wrote: > > And if a competing water service thought they could do better than the > incumbent, why not let them put in a competing water project? If they > think they can make money after the cost of the infrastructure, then > they may be onto something. We don't have to worry that too many > would join in, the laws of diminishing returns would make it > unprofitable for the nth company to build out the infrastructure to > enter the market.
The laws of diminishing returns have already set the bar for the point at which it's not profitable for a new company to enter the market and try to compete. Right now the number is roughly 2, cable and dsl, give or take a few outliers. I do believe the point would be to encourage a little more competition than that. :) -- Richard A Steenbergen <r...@e-gerbil.net> http://www.e-gerbil.net/ras GPG Key ID: 0xF8B12CBC (7535 7F59 8204 ED1F CC1C 53AF 4C41 5ECA F8B1 2CBC)
