Jerry Brito on How Government Regulations Created the Time Warner-CBS Blackout
When negotiating to buy a new car, a frequent tactic of shoppers is to get up and walk away if the salesman's price is higher than they want to pay. Often the salesman will run after the buyer with a "final" offer that makes the buyer grin in victory. Sometimes, however, the shopper just has to walk away empty-handed. In the days that follow, the salesman might call and make a lower offer, or if the buyer just has to have the car, he might return with his tail between his legs and pay more than he wants to.
That's how negotiation is supposed to work in a free market. Unfortunately, writes Jerry Brito, the fact that many are calling for government intervention in the recent standoff between CBS and Time Warner Cable shows that there is nothing free about the video marketplace.