In my rudimentary understanding of game theory, the operation of autorickshaws in Chennai would qualify as massive defection; equally, consumers are also defecting to other systems. As a class, autorickshaw drivers have decided to abandon the system. They have thus forfeited goodwill of consumers as a whole. The market has responded with unregulated offerings such as share autorickshaws. Private enterprise is filling the space they vacated, with things like the Namma Auto system (which is by no means cheap). Foolish auto drivers should realise that cartelisation will reach an efficiency limit and then fail to work, inviting tough consumer retaliation.
Posted on: Sun, 07 Jul 2013 06:07:14 +0000
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