Once upon a time, there was a company that was given an exclusive charter to build and operate a railroad between two cities that were quite far apart. That charter required certain levels of service to the cities and to each town along the route and, in exchange, afforded the company the exclusive right to carry certain types of freight and passengers. To be sure the fares the company charged weren’t excessive, an independent panel was established to review the company’s income and costs.
For decades, the railroad thrived, with more passengers and freight every year. Even though it was the only railroad allowed to operate the route, the company’s customers still were satisfied with its fares and service.