Re:Beware of Freeconomics
by dkokelley on Tuesday February 26, 2008 @08:29PM
(#124409)
Using very low prices to undercut competition and then later raising prices only works where there is some way to lock customers in.
Exactly. That's why many utilities (water, gas, electricity) are granted government-sanctioned monopolies on their products or services. The infrastructures required to provide these utilities are so great that competition is near impossible.
Exactly. That's why many utilities (water, gas, electricity) are granted government-sanctioned monopolies on their products or services. The infrastructures required to provide these utilities are so great that competition is near impossible.