Earlier quoted context omitted.
I read a book called "Economics in One Lesson" [1] which is quite in few ways similar to your arguments. The gist of the book is Government should avoid doing anything in capitalistic market, goes on to argue against Minimum wage Laws, Labour unions, Price control etc. and how a free market will solve every economic problem. The problem with your arguments / analogies and of that book, is that they tell a simplistic…
> You say that a 'no-blocked sites package' and 'whitelisted site package' could co-exist but fail to see that, the former one could be priced so high (once the latter gains a very large market share) that it becomes necessary for an ordinary person to limit his choices. See this is where pretty much everywhere gets it wrong. Prices aren't set by one side. Prices are ALWAYS set by both sides coming to an agreement. P…
The price will only be efficient in the face of robust competition. The price will not be optimal when there is a monopoly. If the telco/ISP market were actually competitive, a plan that imposed artificial scarcities (like limiting packets based on their content instead of the actual cost to transport them) would never see the light of day as competitors would offer an uncrippled product for essentially the same cost.