jimrandomh comments on Open Thread: May 2009 - Less Wrong

4 Post author: steven0461 01 May 2009 04:16PM

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Comment author: jimrandomh 01 May 2009 08:49:59PM 1 point [-]

Installing wires requires digging up roads, using utility poles and leaving utility boxes on other peoples' property. You need permission from local government to do that, period. In some places, the local governments only give one company permission to do that. That's a government granted monopoly. In other places, they give permission to more than one company, so that they can compete with each other. That's a government granted oligarchy. But whether there's one pre-existing cable company or five, if you want to start a new cable company, you need government permission, and you probably won't get it. It's nothing like a free market.

Comment author: SoullessAutomaton 01 May 2009 09:03:42PM *  3 points [-]

That's a government granted oligarchy.

And it's worth noting that a gentlemen's agreement to not compete too hard is profitable for all parties in a heavily restricted market. Ergo, the government-granted oligopoly is only superior to the monopoly insofar as you expect business executives to be irrational enough to not cooperate in the iterated Prisoner's Dilemma.

Comment author: MichaelBishop 01 May 2009 09:55:17PM 1 point [-]

That's a government granted oligarchy.

You mean oligopoly

Comment author: mattnewport 01 May 2009 09:57:00PM -2 points [-]

Yep, it's the bankers that are a government granted oligarchy.