Amiram Hayardeny's My China Experience

Competition - Response to Comment

I usually don't respond to comments, but this one certainly deserved a response.  UX-admin raised an age old question, and an excellent one too: what if there are no options?  What if there is no competition?  No choices?  Obviously, the observation is correct.  You cannot be an educated consumer if no options exist.  In fact, the very concepts of open markets and free trade are based on the fact that the markets are just that: open and free.  What UX-admin is talking about is monopoly.  In many cases, a monopoly is government owned, but not always.  Sometimes, a monopoly was successful in wiping out all smaller competitors, to be left alone and squeeze the choice-less consumers.

Indeed, the "regulator" has a critical role in the elimination of monopolies.  In many countries, a monopoly, once declared, is required to take significant steps in its own elimination - AT&T and to a certain extent Microsoft are recent examples.  Monopoly is a consumer nightmare.  The reason is simple: once there is no competition, the product or service can be sold at the highest possible price.  Competition is the best price moderation in existence.
So my not so great answer to UX-admin is that free markets are built from the bottom up.  Surely, in some aspects choices DO exist.  You can eat in a restaurant that is cheaper and serves its customers better.  You can do what I do: tell the places which you frequent that you come to them because they are either cheaper, better, higher quality.  You can tell your family and friends to go or to not go to certain places.  At the age of the Internet - you can do what I do: blog.

Of course, if you are on your own - you won't get very far.  But if there are many - it's an entirely different ballgame.  And the government, once it is open for election (absolute competition) wants the citizens to be happy.  The government regulates monopoly, and enforces competition.  It is good for everyone: the consumer and (believe it or not) the competitors.  Competition encourages innovation, quality, price.  Competition is the best form of trade.  It takes time, but since it is the only concept which supports equilibrium - it works.

So be optimistic, and patient.  It will happen, in due time.

Posted at 06:51PM Mar 25, 2007 by Amiram Hayardeny in Personal  |  Comments[2]