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Carrying the "natural monopoly" point a little further, it's not all upside for the municipal operator: while the commercial operator could walk away from an un
by 5teev 16y ago
Carrying the "natural monopoly" point a little further, it's not all upside for the municipal operator: while the commercial operator could walk away from an unprofitable service area, the municipality will have to provide the service even at a loss. (At least as long as taxpayers think it's worthwhile.)
- gergles 16y agoRight, and while it may be unprofitable to build roads to the trailer park, if a city thinks the trailer park deserves connectivity to the rest of the city, the roads will get built. Equal access is a fundamental principle of infrastructure projects -- or at least it should be.
- jbooth 16y agoTypically the operating agreement giving the company a monopoly ensures that they provide service to everyone as one of the conditions.