An Intro To Broadband Regulation

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.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s