November 24, 2003

A Little More Lessig [6:16 pm]

Seems like it’s just been that sort of day. From BoingBoing: Fiber to the People

The answer, as Cornell economist Alan McAdams argues, has nothing to do with Karl Marx and everything to do with basic economics. AFNs are natural monopolies. That doesn’t mean that there can be only one, but rather that if there is one, then it is far cheaper to simply add customers to the one than to build another. The electricity grid in a local neighborhood is a good example of a natural monopoly. Sure, we could run four wires to every home, but do we really need four electricity companies serving every home?

The question is not who installs the wire, but who provides the service. Provocative, at least.

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