Linked by Kroc on Thu 30th Aug 2007 13:03 UTC
Editorial I hear often that when something new appears that "competition is good". The primary reasons competition is seen as good, are: it drives down prices; it gives consumers more choice; it pushes technology forward, quicker. Competition is not good because: competition is why consumers have to choose between HD-DVD and BluRay; competition is why DRM exists; and more. In this article, each of the supposed benefits of competition will be looked at in more detail.
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Competition is good?
by -APT- on Thu 30th Aug 2007 14:05 UTC
-APT-
Member since:
2007-03-20

It's only good if it's the right kind of competition.

HD-DVD vs Blu-ray is a typical example of the wrong competition, both formats are hurting adoption of the format making people cautious when buying. Now competition between different DVD players is good, it can help lower prices if manufacturer A is cheaper than manufacturer B.

I'm sure everyone realises that broadband is similar. Various people are under the delusion that there is competition between DSL and cable, however the fact is there is no real competition. Now in countries where the network is provided by local government and companies can use the network there is a level of competition.

Competition isn't a magic fix which can save every market, but it can help.

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