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I don't think they're an example of something that markets would be unlikely to handle. I suspect any system of private roads would at the bare minimum require
by baddox 10y ago
I don't think they're an example of something that markets would be unlikely to handle. I suspect any system of private roads would at the bare minimum require liability insurance.
- pg314 10y agoInteresting perspective. Now I understand what you're saying. I think it would be dubious that private roads would require liability insurance. At present, liability insurance is only widespread because of regulation (i.e. a non-market mechanism). I do not see the economic case for the owner of the road to require liability insurance of its users. Insurance wouldn't cover the full cost either. According to [2], total car insurance losses were $117.5 billion in 2011, compared to the $242.0 billion in economic losses cited in my previous post. [1] https://www.ibisworld.com/industry/automobile-insurance.html https://www.ibisworld.com/industry/automobile-insurance.html [2] http://www.iii.org/fact-statistic/auto-insurance http://www.iii.org/fact-statistic/auto-insurance