Here's an interesting article from International Herald Tribune about how deregulation can sometimes go wrong:
William Pfaff: Deregulation gone mad
While I'm a market oriented guy, seeing all those commercials in France about choosing among 18 different telephone-directory providers makes one think that the world has gone mad. How can there be enough space in the market for something like this?
And the airline industry example is thought-provoking. When I was in the States, a Pittsburgh-Washington DC ticket was twice as expensive as a Boston-Pittsburgh and 4 times as expensive as a Washington DC - Boston one. Altough it's a much shorter flight.
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2 comments:
yeah.. thats sick.. nowadays there's like 80 differnent prices for the same trainride. to know what the price is a specific day you have to be a math professor and have a degree in computer sience.. but one thing you can always know. it almost always cheeper to buy a ticket for a longer trip - oh so logical.. go deregulation!!
Pricing is always an enigma, especially when it comes to airlines. I strongly suspect they use a random number generator to come with their different rates, because otherwise they'd be able to explain how come almost every seat in the plane has a different price.
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