[piva00]

Here in Sweden, government policies have enabled the larger cities to be optical fiber-wired with common infrastructure so multiple companies don't have to roll out their own, not only that, the larger program is to enable a completely connected Sweden [0].

Government policies are enabling better efficiency of optical fiber infrastructure usage, without requiring multiple vendors to do the most expensive and least rewarding part of servicing internet: digging trenches for wires.

[0] https://www.government.se/496173/contentassets/afe9f1cfeaac4...

[donw]

That's a good example -- and another "coordination problem" at that, which is one of the types of problems where appropriate government action may be the most efficient solution.

[donw]

Addendum: I'm seeing a common theme in the responses.

When there's a coordination problem, but the equilibria state is unsustainable (such as overfishing) or lower-value (imagine competing electric grids with different voltages and frequencies), then government regulation can be useful by either imposing unilateral costs, and/or by defining a common standard.

There is the issue of avoiding regulatory capture, but I suppose that's for another time. :)