Dev.SN ♥ developers
Sections
Dev.SN
youngatheart writes:
"When does merging two companies make for more marketplace competition? When they aren't big enough to compete with the other giants in the industry. At least that's the logic behind the argument that Sprint should be allowed to acquire T-Mobile. I'm wondering what this means for MetroPCS users like me now that we're T-Mobile users by the previous merger."
This discussion has been archived.
No new comments can be posted.
Sprint: Purchase of T-Mobile Promotes Competition
|
Log In/Create an Account
| Top
| 1000 moderator points
| 31 comments
| Search Discussion
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
I'm not a robot like you. I don't like having disks crammed into me... unless they're Oreos, and then only in the mouth.
-- Fry
(Score: 3, Insightful) by Thexalon on Tuesday March 11 2014, @04:45PM
Never.
It's that simple: 2 or more struggling companies are invariably going to be more competitive with each other and with the bigger players than 1 not-struggling company. They're going to fight like crazy, and the way companies fight is by offering better prices and services for customers in the market. This is good for customers.
This is a settled economics question, as much as anything is settled. The more sellers you have in a market with a lot of buyers (in this case, everyone in the US), the smaller the difference between the marginal cost of production and the actual selling price, which is the definition of an efficient marketplace.
Every task is easy if somebody else is doing it.