Challenge to libertarians
Nov. 23rd, 2003 08:48 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
guslYour cell number, yours to keep
A law is being passed to force cell phone companies to let consumers keep their numbers when they change services. This will boost competition among cell providers, as having to change one's number is a barrier to changing providers.
Puzzle: Is government intervention necessary in this case? This seems like it will be a good change.
The question is: why didn't companies already compete by having a policy of allowing customers to keep their numbers when they move? Irrationality on part of the providers by not seeing this need? Irrationality on part of the consumers when they didn't see the conditions of their contract? Is it a case of being stuck at a sub-optimal game theoretic equilibrium, where coordination would be necessary for all parties to benefit (a classical justification for coercion)? Are providers going to profit more or less from this change?
A law is being passed to force cell phone companies to let consumers keep their numbers when they change services. This will boost competition among cell providers, as having to change one's number is a barrier to changing providers.
Puzzle: Is government intervention necessary in this case? This seems like it will be a good change.
The question is: why didn't companies already compete by having a policy of allowing customers to keep their numbers when they move? Irrationality on part of the providers by not seeing this need? Irrationality on part of the consumers when they didn't see the conditions of their contract? Is it a case of being stuck at a sub-optimal game theoretic equilibrium, where coordination would be necessary for all parties to benefit (a classical justification for coercion)? Are providers going to profit more or less from this change?