&gt; Who would go with Company A&#x27;s lead-laden water if B&#x27;s is clean?<p>That&#x27;s not a realistic scenario however as that implies that each company would set up its own plumbing infrastructure, water sources, etc. In reality, the infrastructure is shared. So I see no reason why the choice wouldn&#x27;t target be between &quot;company  A who has lead-laden water, company B who does some extra purification and charges for it heavily and company C who serves the exact same water as A but  has better advertisements.&quot;<p>What would be the incentive to actually fix the infrastructure if it benefited your competition just as much as you?