>G'day Ken,
>
>> Deregulation surely does not minimize transportation costs for
>>smaller communities and to distant communities. For them
>>deregulation is often a disaster. Before deregulation many smaller
>>cities had to be served as the price airlines had to pay for
>>lucrative routes. Now these cities have to beg airlines to serve
>>them and even when they are served fares are high, and there is no
>>competition at all.<
>
>Same with broadband IT links. Which makes me wonder if we're not talking
>about something close enough to a network to ask Brad if the DeLong Law of
>diminishing returns to and from minor nodes in networks (if I've got it right)
>might not be relevant to airline policy debates.
>
>Waddyareckon, Brad?
I think so. Markets aren't friendly toward universal service--they're
friendly toward people in the really,really big nodes...
Brad DeLong
