Wednesday, May 27, 2015
Tuesday, May 26, 2015
If You Like the Airlines’ Consolidation, You Might Love an Even More Concentrated Broadband and Cable Marketplace
Consider the consequences on innovation and competition If AT&T has succeeded in acquiring TMobile. Does anyone (including Wall Street Journal editorial writers) believe consumers would enjoy the benefits of data rollovers, cheaper rates, lower roaming fees and the option to bring their own devices?
In a concentrated industry, operators have great incentives to match each other’s rates and service. That’s what consumers get from the spate of recent airline mergers. Even the industry maverick Southwest has “gotten with the program” on fares and many of the highly lucrative extra fees. Call it collusion, consensus, or conscious parallelism: the airlines offer roughly the same fares and fees? Can you recall a highly advertised sale in the last year?