In Response to Mark Cooper

[Commentary] At its core, I believe the debate between Mark Cooper and myself in this instance arises from Mark’s belief that higher market shares, higher profits, or higher cash flow are per se evidence of an abuse of market power and consumers. This is simply not true.

Higher market shares, higher profits, and higher cash flow are a reward to firms that better serve the needs of consumers. As Adam Smith stated, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” Why do firms bother to improve quality? Mark apparently wants them to do it out of the goodness of their heart, but this is not reality. Quality improvements are motivated by a desire to increase market share and increase profits. AT&T and Verizon do not have high market shares because they abuse customers; they have high market shares because they serve consumers better than their rivals do. If they didn’t, then their customers would flee; they have options.