
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 <ras@e-gerbil.net> http://www.e-gerbil.net/ras GPG Key ID: 0xF8B12CBC (7535 7F59 8204 ED1F CC1C 53AF 4C41 5ECA F8B1 2CBC)