However, a natural monopoly isn't a permanent state of affairs. The "excess" money being made acts as an incentive for technological innovation - e.g., Microsoft has, or had, a de facto natural monopoly on operating systems, but is being challenged for dominance by innovators like Linux. Is the solution to break up Microsoft? Some, of course, say yes.
We don't have decentralized, sustainable, alternative energy sources in large part because there is no economic incentive to develop them. Government regulation makes electricity generated by large monopolies too cheap to compete with. There's also no incentive to conserve energy.
If you were able to take the long view, you'd be able to see what a mistake is being made. But not everyone is able to foresee the future, and those of us who can are doomed not to be believed. -g-
Cassandra
(Man has a history of exploiting energy sources until they are depleted - all the trees in England, all the trees in Africa, even whales, even mummies. After the pyramids were opened, mummies were used for fuel. We even want to burn all the coal under some of the most beautiful land in the West - so short-sighted. So human. -ng-) |
