Reply to post: Re: Free markets are great.

How long is a lifetime? If you’re Comcast, it’s until a rival quits a city: ISP 'broke' price promise

Any other name

Re: Free markets are great.

Free markets are good, as competition is increased and the prices are lowered.

That is only true for a market which is infinite in size and has a negligible cost of entry. One can easily imagine a situation where the upfront cost of entry, in terms of the investment needed to compete, exceeds the potential rewards, which are limited by the size of the market and the cost of production for the incumbents. In this situation, the market may be as free as you wish, but the prices will remain exactly at the point where entering it makes no economic sense - and no lower, even if the cost of production is much below the selling price.

Sounds familiar?

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