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Old 07-05-2007, 04:01 PM
Arnfinn Madsen Arnfinn Madsen is offline
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Join Date: Jan 2005
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Default Re: Why aren\'t there more private roads?

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The problem with this is that point B (where the road is traveling to) has to be a monopoly of some sort in and of its self. The fact that X people don't want to pay Y toll to get to point B is not sufficient for the road to point B being a natural monopoly, point B must not have any competition from points C D and E either (otherwise roads will be provided for those unable to afford the toll to the other points, then making points C D and E relatively more desirable compared to B than they previously were).

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Yes, but there is often a lack of good substitutes for B. This is why these situations happen.
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