Shouldn't the water companies 'compete' with bottled water companies?

Question

Bit of market economics here...

In a 'perfect' free market world, shouldn't the tap water companies be competing for our business as 'water drinkers' against the bottled water companies?

Whats 'broken' ?

Answer 1

to an extent..but they are also different types of markets..bottled water companies compete with other bottled water companies, tap water is owned by the city and is regluated by the users consumption.

Answer 2

absolutely not. i don't want to fund their business thru my water bills.

I know i do already but i mean its a utility not a private business.

Answer 3

They can't-the water coming from the state DWP water filtration system is from waste water cleaned-it's actually disgusting if you think about it-now spring water for the most part is competitive-and has it's own problems thanks to all the pollution in the world-but still more appealing than drinking someones urine filtered down>you think everyone is aware of this?LOL

   Doubtful-

Answer 4

You are comparing two entirely different products. Although not quite as extreme, you are suggesting that somebody selling cakes should compete with somebody selling trousers.

The marketplace for bothproducts is completely different. Bottled water companies do not provide a service in the same way that water companies do.

Not sure your grasp of market economics is quite what it should be.

Answer 5

Compete with them, and raise taxes and the price of living? It's going to get to the point where you have to be a multi billionare to live sooner or later.

Answer 6

most water companies are city owned utilitiies.

Answer 7

Water companies have a monopoly. We have no choice as to who supplies our water.

I dont think your going to use bottled water to flush the toilet.

Even if you switched 100% to bottled water you still get a water bill if you use the sewers or if you have gutters on your house.

Answer 8

Not really.  They are 2 different markets.

Answer 9

Hush we don't want the water companies to raise their prices!

Answer 10

They already compete, and you can shift the balance toward the bottled water companies by using bottled water to flush your toilets any time you want.

Answer 11

There is no such thing as market economics in the demand and supply of water. The demand for water remains substantially the same as does the supply. That is to say the supplier can not increase the supply to meet an increase in demand. The consumer has an inescapable need for water and therefore can not influence the price. Thus tap water suppliers have no need to compete for our custom as it is compulsory that we consume their products. The suppliers of bottled water do compete for custom by emphasising taste. sparkle, etc and by shifting demand between one another compere against their fellow suppliers.

And finally there are no perfectly free markets in any commodity anywhere in the world. Even in primitive societys the free market is influenced by outside pressures that affect the economics.