4 ms·
Everybody loses because there aren't multiple road networks competing to provide access to the same places. There is just one network, right? This means the i
by lottin 4y ago
Everybody loses because there aren't multiple road networks competing to provide access to the same places. There is just one network, right? This means the it's a monopolistic market, and in a monopolistic market everybody loses except the monopolist.
In a small town privately-owned roads can work because there aren't many outsiders using the roads, therefore the road owners are themselves the main road users, and so they may have the right incentives to do adequate road maintenance, and they don't charge anything because they have a reciprocal agreement, but a large road network that is privately owned would lead to a "monopoly equilibrium" where roads would be poorly maintained and road users would be charged high fees.