Market competition - where it's useful and where it's definitely not

Market competition among mobile network providers

There are several mobile network operators in the Austrian market. 

In the past (before year 2000), the market was mainly dominated by Mobilkom, 
a subsidiary of Telekom Austria, which was itself a subsidiary of Austrian Post. 

When we look at the market shares of mobile network operators, some only see the job cuts at the former Mobilkom. However, nobody calculates the number of new jobs created by the competition or considers whether there are now more jobs overall for mobile network operators in the Austrian market than during the near-monopoly era.

 

precarious jobs 

There are always people, including rarely some german economists, who call for more competition in the precarious job sector. 

Simple moving companies with small trucks charge at least €38-€50 per hour and don't work for less than an hour. You can only book them for one hour or more.

Distributing printed advertising flyers costs €0.11 per piece at the post office.
Private distribution agencies in Vienna often charge between €39 and €60 per 1,000 pieces for distribution alone. It's nearly impossible to find a reputable offer below that price. Lowering prices in the precarious segment risks poor or no service at all. (Some advertising leaflets end up in the trash and there is no legal company at all behind it.)

Trying to cut prices in the lowest price segment almost never works; there, the key is to offer better guaranteed performance and quality. Customers in the lowest price segment are almost always interested in guaranteed performance and quality, and rarely in a price reduction of 0.01 cents. 

Prices that are too low often cause customers to fear that the required service will actually be provided or not.