Cell phone cloning and economics...

[Jim Choate]

Hi,

Another point in regards the market behaviour regarding cell phones....

In a free-market there is no reason to believe that phone cloning would be
reduced as it would still provide a distinct economic advantage over those
who sell 1st line equipment.

The only thing that keeps the 1st line companies in business is the
regulation, without it they can't afford to do the basic research or
infrastrucure construction since they can't sell enough phones in the first
place because the clones have bought up their share. So without some sort of
3rd party regulation there is nothing inherent in a free-market that
protects that initial intellectual and econimic investment so that it can
grow and produce a market and a profit.

Now it is clear that this regulation is *NOT* primarily the government but
rather the social institution or society the governemt or regulatory body
exists within. Remember, the profit goes to the one who occassionaly breaks
the social taboo's.


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