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Yakk · 06-09-2004, 10:33 AM

Problems:

Having a spectrum of FM radio stations is very convienient. Under this system, most of the FM dial would be full of data traffic. All old FM auto-scan radios would be basically useless. Negative externalities.

Same problems with over-the-air TV.

You can pull out all the problems with land ownership. Notice you have to pay property taxes on land, the government can sieze it, etc. Because they don't make more land, unlike chairs.

The attempt to get broadcast HDTV out there is another thing the market might do poorly. Not many people want an HDTV set until there are stations broadcasting HDTV, and nobody will broadcast HDTV unless there are people picking it up. You get a convex-down demand curve that has two points of stability, one with nearly nobody having HDTV and another with lots of people having HDTV (and the susiquent economic activity).

Government intervention can bump the market from the "no HDTV" state to the "lots of HDTV" state easier than private companies can.

Private companies are good for local optimization, far better than governments.

I would admit, this system would allow broadcasters to handily maximize their profits.

I don't know which side of this arguement I'd be on, I just thought I'd point out some examples of the problems with it...

06-09-2004, 10:33 AM	#6 (permalink)
Yakk Wehret Den Anfängen! Location: Ontario, Canada	Problems: Having a spectrum of FM radio stations is very convienient. Under this system, most of the FM dial would be full of data traffic. All old FM auto-scan radios would be basically useless. Negative externalities. Same problems with over-the-air TV. You can pull out all the problems with land ownership. Notice you have to pay property taxes on land, the government can sieze it, etc. Because they don't make more land, unlike chairs. The attempt to get broadcast HDTV out there is another thing the market might do poorly. Not many people want an HDTV set until there are stations broadcasting HDTV, and nobody will broadcast HDTV unless there are people picking it up. You get a convex-down demand curve that has two points of stability, one with nearly nobody having HDTV and another with lots of people having HDTV (and the susiquent economic activity). Government intervention can bump the market from the "no HDTV" state to the "lots of HDTV" state easier than private companies can. Private companies are good for local optimization, far better than governments. I would admit, this system would allow broadcasters to handily maximize their profits. I don't know which side of this arguement I'd be on, I just thought I'd point out some examples of the problems with it... __________________ Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.