Jerry Ellig explains why it would be a bad idea to re-classify broadband internet providers in order to push net neutrality legislation. The best way to kill innovation is to grant a monopoly charter to one firm. Unless there is an absolutely strict natural monopoly (in other words, only one firm in the world could possibly exist—think of a situation such as an extremely rare mineral which can only be mined out of one location), there is still a high likelihood of market contestability, even in a market with a natural monopolist. By giving one firm the government’s blessing, all the benefits of competition are wiped out, and there is nothing that government regulators could do to simulate this.
April 17, 2010
An Intro To Broadband Regulation
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