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Very Hot Topic (More than 25 Replies) Natural monopolies have existed? (Read 662 times)
Jeff
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Re: Natural monopolies have existed?
Reply #40 - May 8th, 2018 at 2:59pm
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SkyChief wrote on May 8th, 2018 at 2:49pm:
Well, we've already discussed railway infrastructure.

The electrical grid would be another example of a natural monopoly.  If Southern California Edison doubled their rates tomorrow, We (users) have no choice but to pay it.

We can't transfer our AC power to Bob & Pete's Power Co.

Because Bob & Pete's Power Co. doesn't even exist.

In Southern California,  Southern California Edison has a monopoly. It's a natural monopoly because they alone built/own/maintain the electrical infrastructure.
Suppliers of electricity were granted monopolies in various areas by governments. They buy and sell power among themselves, so the power you receive in S. Cal might have been generated by another power company.

They aren't "natural" monopolies, the government has just granted them the power to require you to buy power from them.

Governments called them "natural monopolies" because, could you imagine more than one set of power lines running through your town?

I can. The poles running down my road now carry power lines, telephone lines and cable TV lines.

The telephone and cable are no longer used, because they've been moved underground, but there is room for other power lines both on the poles and in the ground, where there is also room for more cable and phone lines... But alas, cable and landline phone service were declared (when 150 years ago?) to also be "natural monopolies".

BTW, nobody else built any power generation or transmission lines because they didn't have permission to do so in your power companies area of granted monopoly.

  
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Don_G
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Re: Natural monopolies have existed?
Reply #41 - May 8th, 2018 at 3:08pm
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Jeff wrote on May 8th, 2018 at 2:59pm:
BTW, nobody else built any power generation or transmission lines because they didn't have permission to do so in your power companies area of granted monopoly.



Weird! Meaningless babbling at best but it does speak well for regulations.

otherwise the US would have power lines on both sides of the roads and another two or three running under the roads.

Regulations are wot's gud for libraturyuns!
  
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Jeff
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Re: Natural monopolies have existed?
Reply #42 - May 8th, 2018 at 3:24pm
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Quote:
otherwise the US would have power lines on both sides of the roads and another two or three running under the roads.


In the absence of free competition, innovation is stifled. No more can accurately said about it.

There is now way to know what would have been created if power companies would have been allowed to compete for customers. Since they weren't, no one looked for innovative new ways to deliver power.
  
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The Opposition
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Re: Natural monopolies have existed?
Reply #43 - May 8th, 2018 at 11:38pm
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Jeff wrote on May 8th, 2018 at 8:14am:
It's not definitional, it's a fact of economics. In the face of free competition, monopolies can't exist.


Correct. Just as aggression is wrong.

If a monopoly exists, it must be because of government interference.
  

This moral relativism of yours is exactly what lets government take this freedom, then that freedom, until we have lost them all.
-SnarkySack
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Jeff
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Re: Natural monopolies have existed?
Reply #44 - May 9th, 2018 at 7:25am
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The Opposition wrote on May 8th, 2018 at 11:38pm:
Correct. Just as aggression is wrong.

If a monopoly exists, it must be because of government interference.
Off topic on the monopoly issue, but another instance of how regulation hurts rather than helps-

http://reason.com/blog/2018/05/08/vector-borne-diseases-climate-change-and?utm_m...
  
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Jeff
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Re: Natural monopolies have existed?
Reply #45 - May 10th, 2018 at 8:38am
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I happened on this this morning in one of Reason's 50th Anniversary posts-

https://reason.com/archives/1981/10/01/two-utilities-are-better-than?utm_medium=...

It's worth reading about places that have competition to provide electric power.
  
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Don_G
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Re: Natural monopolies have existed?
Reply #46 - May 10th, 2018 at 1:24pm
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Jeff wrote on May 10th, 2018 at 8:38am:
I happened on this this morning in one of Reason's 50th Anniversary posts-

https://reason.com/archives/1981/10/01/two-utilities-are-better-than?utm_medium=...

It's worth reading about places that have competition to provide electric power.


Good one Craig! I can't read the article because it comes in blanked out like a redaction for some reason. But I sure the hell don't need to be convinced!

Free market! Nuff said!

But alas, it's only in Lubbock and obviously isn't going anywhere.

Now in a socially responsible capitalist system, a lot of expense could be avoided by sensibly regulating the cost of electricity. That's a compromise that appears to work at least. Our government has slapped limits on our power authority.

Socially responsible capitalism cooperates with the free market. You should learn more about it!
  
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Jeff
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Re: Natural monopolies have existed?
Reply #47 - May 10th, 2018 at 2:22pm
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Good one Craig! I can't read the article because it comes in blanked out like a redaction for some reason.

Works for me.
  
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