Eastfield Lodge wrote:The Confederacy of Nationalism wrote:Monopolies
are the pinnacle
of the free market
the monopoly has been selected by the consumer base as the best service provider, no exceptions.
Here's an example. Read through it fully, please:
Let's say that the "free market" proceeds to such an extent that only one ISP provides internet for the entire country. They've done this through a better quality service, better customer service and generally being one step ahead of their competitors. Now, with no other ISPs competing for a market share, the monopolist ISP has no reason to improve their product, and in fact, because all they want to do is make money for themselves, they decide to reduce the quality to save on costs. But there's nothing people can do, because it's a choice between sticking with rubbish internet, or having absolutely no internet whatsoever. And imagine the impact on the economy as a whole if the internet suddenly stopped.
The point is, because the monopoly has all the control, it can advertise/spend enough to prevent any new ISPs from getting into the market, whilst providing shitty quality that would never have stood in a competitive market. Do you see why this is bad?