I too think this is an interesting question. I also think you’re hinting at what I believe as well, that networks are a classic case of economic good that make the preconditions for a free market nearly impossible.
Some people are so committed to the ideal of unfettered market conditions that they lose sight of whether such conditions are possible. Such people are normally immune to all reason when it comes to assessing the true potential for a market to exist.
So why the crack in the facade in this instance? I think Internet access is one of those areas where people accutely feel the obnoxious rent seeking behavior of monopolists on a day to day basis.
As an aside, I do think it’s funny how much talk we hear of entrepreneurs seeking to create network effects with their products. To what end? Presumably to create another means—beyond simple competititve product fitness—to retain customers and extract value from them. You want network effects? Try owning an actual network, where there are first mover advantages, and huge barriers to market entry!
Some people are so committed to the ideal of unfettered market conditions that they lose sight of whether such conditions are possible. Such people are normally immune to all reason when it comes to assessing the true potential for a market to exist.
So why the crack in the facade in this instance? I think Internet access is one of those areas where people accutely feel the obnoxious rent seeking behavior of monopolists on a day to day basis.
As an aside, I do think it’s funny how much talk we hear of entrepreneurs seeking to create network effects with their products. To what end? Presumably to create another means—beyond simple competititve product fitness—to retain customers and extract value from them. You want network effects? Try owning an actual network, where there are first mover advantages, and huge barriers to market entry!