If the government is a monopsony for a good like “subways” or “highways”. It’s advisable to have an in-house alternative to the commercial sector. Commercial f

If the government is a monopsony for a good like “subways” or “highways”. It’s advisable to have an in-house alternative to the commercial sector. Commercial firms are obligated by incentive to increase profits over time - whereas in-house teams are obligated to increase organizational size/pay over time. Competition between the two should lead to an equilibrium between organizational bloat and profit taking.