Wednesday, October 14, 2009

Wasteful competition

Singapore can give a good case study about wasteful competition. Some examples to be studied are:

a) Multiple set-top boxes to watch different pay TV channels
b) Multiple cash cards for travel and merchants
c) Public transport operated by two large operators

The competition led to duplication and waste. Consumers are inconvenienced. Merchants are not willing to accept the new mode of cashless payments, due to the need to install multiple gadgets. The public transport network is not convenient for consumers, especially the last mile.

There is a case for these functions provided by the state or by a regulated monopoly. Some countries adopt the concept of regulated monopoly, which can work well under proper management.
Posted by at

2 comments:

Tan Kin Lian said...

Competition is supposed to reduce cost.

In Singapore, it adds to cost and inconvenience. Without proper regulation, businesses can make life complicated for customers and increase their profits.

It is the role of Government to regulate, rather than to leave matters to the "free market".

Even competition has to be regulated. Businesses should not be allowed to mislead customers and get away with it. They cannot overcharge customers.

October 15, 2009 6:32 AM
Louis said...

I hate the double plastic wrapping many things are sold in the shops. CDs are sold in two clear plastic wrappers and then put in a plastic shopping bag. Very wasteful.

Not sure if competition drives it though.

October 28, 2009 2:42 PM

Post a Comment

Subscribe to: Post Comments (Atom)

Blog Archive