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This is true, but it doesn't change the mindset of the monopolizer. Once a decision has been made to build a competing road the bulldozers, so to speak, are unstoppable. That may be largely true, but the key words are "once a decision has been made". The fact that the prospective investor knows that the existing provider will change pricing etc if competition ensues is factored into the investment decision, and normally prevents the investment proceeding. Thus, the threat of entry is nullified. Economists do not treat all markets alike and they will tell you that there is a significant difference between the economic incentives facing a prospective entrant in the incream vending market and a prospective entrant in the road market. In the former case, unregulated competition is generally efficient; in the latter, it may lead to a wasteful duplication of infrastructure, or private monopoly.
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