From: Matthew James Gering <mgering@ecosystems.net>
Date: Tue, 6 Oct 1998 06:42:12 +0800
To: "Cypherpunks (E-mail)" <cypherpunks@cyberpass.net>
Subject: RE: GPL & commercial software, the critical distinction (fwd)
Message-ID: <33CCFE438B9DD01192E800A024C84A193A7A21@mossbay.chaffeyhomes.com>
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Brown, R Ken wrote:
> Jim can look after himself, but the aircraft industry is 
> certainly monopolistic. There are only 2 serious players 
> in the market for large long-haul airliners, Airbus..and
> Boeing

First of all the majority of the market to which they are selling is
anything but free. Each government has a monopoly on their military, and
many have a monopoly on their commercial airlines as well. Government
aren't bound by the same survival rules as consumers, they are able to
irrationally spend as the can simply extort more money.

Despite this very strong market distortion, competition for defense
contracts had been rather competitive in the US, with the recent
consolidation due to shrinking demand (note they cannot seek other
markets freely to compensate). And despite the strong market
distortions, Boeing makes a very slim profit margin on commercial
aircraft (~3%) competing with Airbus.

The private aircraft industry has had a terrible time not for lack of
demand, but because of rampant irrational and overzealous liability
claims. This has created a very limited number of vendors and highly
inflated prices.

Again, none these are natural effects of the free market.

> The real problem with monopoly or cartel is not high prices
> - many monopolies choose to charge low prices - it is lack 
> of freedom.

So you would force people to pay higher prices so can have more choices?
You would force people to support inefficient competitors?

> A monopolisitic supplier of some good has a measure 
> of political power.

Political power gums at the mean end of a gun, what political power do
monopolies have and how?

	Matt