pjrule
Joined 9 years ago
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[ my public key: https://keybase.io/pjrule; my proof: https://keybase.io/pjrule/sigs/dRL8UZjd-eUL9lwnPnAvmo-bMDkJl_BsBesbrlcMBiQ ]
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In fairness to Hanson, a natural monopoly is distinct from a “monopoly” in the popular sense. Public utilities are often natural monopolies—for instance, a city might have only one power company because it doesn’t make sense to build the redundant infrastructure for two power companies. Doing so would incur a high, unnecessary fixed cost. [1] I think Hanson’s trying to draw an analogy to such firms, though I find it a bit loose.